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Hi,
A few years ago me and a friend purchased a buy-to-let property, which we still own and are still renting.
I have always lived with parents (my parents home being my main residence) but I am now looking to buy my own place and move out.
I'm unclear if I need to pay the stamp duty higher rate surcharge. My solicitor has given me different answers each time. I've actually used the calculator on the government website, and I'm still not clear on whether I need to pay the higher rate or not. Let me explain...
It asks "will the purchase of the property result in owning two or more properties" - the answer to this is yes, as I jointly own a BTL.
It then asks "is the property being purchased replacing your main residence?" The answer to this is also YES. I currently live with parents and this is my main residence. I'm looking to move out and get my own place.
It then suggests that I owe the standard stamp duty, not the higher rate. However my lawyer told me that as I own a BTL I will always be liable for the higher rate stamp duty.
I also looked online and somewhere it said I'd need to meet these three rules: It is important that: 1. The buyer previously owned a home and it was their main residence (they lived there). 2. The previous home has been disposed of at the time of purchase of the new one. 3. The new property is bought with the intent to be the buyer’s main residence (they will be living there).
Again, I live with parents. I do not own the home but it is currently my main residence. It is not going to be disposed of (parents live here).
I also checked on chat gbt which suggested: "Under current UK stamp duty rules, if you already own a property and are buying an additional one, you would generally pay the higher stamp duty rate. However, if the property you are purchasing will be your only main residence (meaning your first personal home, not a replacement of an existing main residence), you may not have to pay the higher rate.
Since the buy-to-let property you co-own is not your main residence and you’re moving from your parents’ home into your new property, you could potentially claim relief from the additional 3% surcharge."
Can someone please advise?
A few years ago me and a friend purchased a buy-to-let property, which we still own and are still renting.
I have always lived with parents (my parents home being my main residence) but I am now looking to buy my own place and move out.
I'm unclear if I need to pay the stamp duty higher rate surcharge. My solicitor has given me different answers each time. I've actually used the calculator on the government website, and I'm still not clear on whether I need to pay the higher rate or not. Let me explain...
It asks "will the purchase of the property result in owning two or more properties" - the answer to this is yes, as I jointly own a BTL.
It then asks "is the property being purchased replacing your main residence?" The answer to this is also YES. I currently live with parents and this is my main residence. I'm looking to move out and get my own place.
It then suggests that I owe the standard stamp duty, not the higher rate. However my lawyer told me that as I own a BTL I will always be liable for the higher rate stamp duty.
I also looked online and somewhere it said I'd need to meet these three rules: It is important that: 1. The buyer previously owned a home and it was their main residence (they lived there). 2. The previous home has been disposed of at the time of purchase of the new one. 3. The new property is bought with the intent to be the buyer’s main residence (they will be living there).
Again, I live with parents. I do not own the home but it is currently my main residence. It is not going to be disposed of (parents live here).
I also checked on chat gbt which suggested: "Under current UK stamp duty rules, if you already own a property and are buying an additional one, you would generally pay the higher stamp duty rate. However, if the property you are purchasing will be your only main residence (meaning your first personal home, not a replacement of an existing main residence), you may not have to pay the higher rate.
Since the buy-to-let property you co-own is not your main residence and you’re moving from your parents’ home into your new property, you could potentially claim relief from the additional 3% surcharge."
Can someone please advise?
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