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  • Tax

    High rate stamp duty

    I wonder if any one can help, or point me to where I may be able to get an answer.

    I am looking to buy a flat for my main residential.

    I’ve been living with my parents as my main house since I was born but I also own BTL properties none of which I’ve ever lived in. Would I be liable to higher rate Stamp duty on the flat I buy now to live in as my main residential?

    I have looked on the HMRC website and it is not the clearest. It does mention if you are replacing your main househould you are not, but if you already own a property you are liable.

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    I believe main residence is exempt - why not call HMRC?

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    Main residence exemption only for replacement of residence so first purchase liable - crazy but true!

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    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA

    Unfortunately under the rules the fact that you own a property already (even though it is an investment) the property you are buying as your main residence is deemed to be an additional property and subject to the additional rate SDLT (or LBTT in Scotland).  The only point where you will not get caught is when you sell the property you are about to buy as your main residence and purchase another main residence and there are rules connected with this if the two do not happen at the same time.

    Regards

    Nigel

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