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Where Taxpayers and Advisers Meet

Buying main residence

Firkinmouse
Posts:2
Joined:Tue Apr 13, 2021 8:24 am
Buying main residence

Postby Firkinmouse » Tue Apr 13, 2021 8:42 am

We sold our home in August 2020. We currently own no properties. We are now in school accommodation which is provided to teachers who do boarding house duties. The house provided is quite small and we have been told a larger property will be available at some stage. Teacher who do boarding duties have the option to stay in school accommodation or receive addition pay. We would like to buy a house with the view to renting it out. If we buy a property and rent it out immediately as a buy-to-let, I believe we’d need to pay buy-to-let stamp duty (8% on our budget)? If we bought a property and moved into it until larger accommodation is provided by the school, would we still have to pay the buy-to-let stamp duty? Is there a time limit between moving in to a property and renting it out to avoid buy-to-let stamp duty?
Many thanks.

someone
Posts:521
Joined:Mon Feb 13, 2017 10:09 am

Re: Buying main residence

Postby someone » Tue Apr 13, 2021 11:40 am

If you own no properties then the first purchase is exempt from the 3% charge. It doesn't matter what reason you buy it for.

Firkinmouse
Posts:2
Joined:Tue Apr 13, 2021 8:24 am

Re: Buying main residence

Postby Firkinmouse » Tue Apr 13, 2021 5:35 pm

Many thanks for your reply. To confirm, does this means that if we bought a house (cash) to rent out and remained in the school property, we would not pay any stamp duty charges (provided we complete before 30 June)?

SDLT Geek
Posts:230
Joined:Sun Apr 30, 2017 5:45 pm

Re: Buying main residence

Postby SDLT Geek » Thu Apr 15, 2021 8:26 pm

That is right. No SDLT if you are not paying more than £500,000.


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