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Where Taxpayers and Advisers Meet

Small overlap between disposing old and acquiring new main residence

Ellie1601
Posts:2
Joined:Sat Feb 05, 2022 8:53 pm
Small overlap between disposing old and acquiring new main residence

Postby Ellie1601 » Sat Feb 05, 2022 9:01 pm

To manage a complex relocation, and issues with our chain, we will have a short overlap where we will own both our old and new main residence. Our current main residence is in England, and our new main residence is in Wales. We are likely to complete on the new residence transaction a few weeks before completing the sale of our old residence. However, will will be moving into the new property ASAP after purchase.
Do we have to pay SDLT at the higher rate and reclaim it shortly afterwards? Or is there leeway to pay at the basic rate? If so how long? The cash flow impact of having to pay the higher rate would mean we need to revisit our plans!

bd6759
Posts:4256
Joined:Sat Feb 01, 2014 3:26 pm

Re: Small overlap between disposing old and acquiring new main residence

Postby bd6759 » Sun Feb 06, 2022 9:54 am

You pay Land Transaction Tax in Wales (not SDLT).

The criteria for the higher rate is the same. Will you own 2 dwellings at the end off day? If so, you need to pay the higher rate.

You can reclaim the difference one you sell your old residence.

https://gov.wales/land-transaction-tax-calculator

Ellie1601
Posts:2
Joined:Sat Feb 05, 2022 8:53 pm

Re: Small overlap between disposing old and acquiring new main residence

Postby Ellie1601 » Sun Feb 06, 2022 10:33 am

Perfect thank you. I stand corrected - of course it’s Land Tax in Wales.
Thanks for the clarity - appreciated.


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