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  • Tax

    First time buyer SDLT relief and BTL ... ?

    Small flat - the north - is it under 125k ? In which case you're not making the most of your first time buyer-ness.

    Your next property - even if your main residence will get hit with the extra 3%... Might want to consider doing things in a different order or buy flat in Ltd if next property is going to end up your main residence and lots more expensive than the flat.


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    DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.

    Hi,

    You will have to keep it as your residential for at least 6 month's, and then convert your mortgage to a buy to let, if you plan on letting it out. If this is genuinely your first property, then you are clear from stamp duty. 

    Regards


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    Thank you Luki There is no mortgage - paid in full already. So do I still have to wait for 6 months?

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    Hi,

    If this is your first and only property, then you can let it out from day one without incurring any stamp duty, (up to 300k) however, when you eventually buy a second home, you will then require to pay stamp duty.

    Regards,


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    Whilst in theory, it can be "let out from day one"; HMRC are likely to have a problem with this.

    If there was never an intention to live in it, but to simply purchase it to rent it out (after waiting for what she thinks is an acceptable period of time), then she is not eligible for first time buyers' relief based upon the criteria, which someone has already posted.

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    Morally, yes it is wrong to benefit from what is meant to help first time buyers getting on the ladder, but legally if she bought her first property in cash and did intend to live in it at first, however, unforeseen circumstances arises forcing her to let, then HMRC may oversee this scenario. Just to clarify, I am not saying I condone tax avoidance by any means.

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    I guess she will have to convince HMRC that she intended to live in it. Noted: re, tax avoidance

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