Will I have to pay 3% higher rate SDLT?

[laf]

Hi,

I would be very grateful on some clarification re the extra 3% SDLT as I am being given conflicting information and find the Gov website confusing.

I am selling the only property I have ever owned, it is not my main residence and is rented out. I am currently renting in another part of the country and presume this will be considered my main residence. My partner and I are now purchasing a home together (she has never owned a property).

The sale may take slightly longer but I have back-up funds to allow me to proceed with the purchase until the sale completes. I understand this will make me liable for the extra 3% stamp duty if I temporarily own two properties. Does this mean I will have to pay the 3% and will not be eligible to claim it back. Will I have to complete on the sale either before or on the same day as the new home to avoid the higher rate?

[bd6759]

You must sell the other property no later than the day you purchase the new property. If not, you will be liable to the extra 3% and it will not be reclaimable.

[maths]

Was the property you are selling ever whilst in your ownership your residence i.e. Have you ever lived in it?

[coranna]

New to this forum.

I have today spoken with HMRC about a similar query. I wanted your clarification but cannot see how to start a new thread.

Recently we sold our home of 34 yrs. We temporarily moved into a buy to let property we already owned, found a new main residence and this should complete in 6 weeks.We are selling the flat we have used for the last 6 months.
HMRC told us that we would not be liable for the extra rate stamp duty. Yet our financial advisor said we had to pay it now and reclaim it when we sold the buy to let?

This is all very confusing.

Does anybody know what the position is? The GOV.UK site seems to clearly say that you should not pay the extra stamp duty if you buy and sell a main residence within a 3 year window. The flat we have been using for a few months is not our main residence and never has been, but what is the definition of a main residence anyway.

[maths]

You need to get a new financial planner.

As you are replacing your residence (ie sold the one you lived in as a residence and now buying another) the 3% is not payable on your new purchase whether or not you keep or sell the buy to let. HMRC appear to be correct for once.

[coranna]

Thank you for your advice maths
Corona