second property SDLT - new PPR.

[landlord1234]

Hi,

Suppose someone owns only one property, purchased 5 years ago for £80,000 and now worth say £100,000 and it is their PPR.

They wish to buy a second property to be their PPR for £200,000 ,but they are struggling to sell the first property and are considering refinancing it as a BTL.

If they do so, Is the 3% SDLT premium due on £80,000, £100,000 or £200,000 ?

Thanks

[SDLT Geek]

The extra 3% SDLT would be due on the £200,000 purchase price of the new property.

Unless the £100,000 property is transferred to a limited company. Higher rates would then be due on the market value of that. Standard rates would then be due on the £200,000 purchase.