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  • Tax

    Stamp duty payable on my next property

    Hello,

    I own a 2 bed house which I live in and have recently completed on a BTL house. Since that was my second property (my house being my first), I had to pay a higher rate stamp duty during it's purchase (approx. £15k).

    I am now looking to sell my current house and upgrade. But I'm not sure if I would still have to pay a higher rate stamp duty when I buy my next home, even though that will be my residential property. I'm confused because now when I buy my upgrade property, I will still already have another property (my BTL) in my name, so would my next home also be considered a second house and will be chargeable at the higher rate?

    This would imply I have paid a higher rate on both the properties I would own and doesn't seem right. Especially because that would not have been the case if I would have upgraded first and then purchased my BTL.

    Please can someone advise?

    Many thanks.

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    You dont pay the higher rate tax on your primary residence assuming you sell your current house and purchase a new one.
    I believe if you convert your current residence to BTL you will have to pay sdlt, if you buy the new house prior to selling your primary residence you will need to pay the tax and claim it  back once current house sells, I think there is a 2 year limit to sell current property
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    Slowly working towards financial freedom


    If you sell your home on or before you buy another one, then you dont pay the additional 3%. If not then you pay the additional 3% but can reclaim it if you sell a former home within 3 years.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022