Stamp Duty on ‘second home’

Discussion in 'Property Tax and Accounting' started by LouiseG, Oct 25, 2018.

  1. LouiseG

    LouiseG New Member

    Hi there. I’m sure it’s been asked before but I can’t find a clear and consistent answer to my question online anywhere.

    We (my husband and I) currently have one property that we’ve lived in for years. We would like to move house but ideally keep hold of our existing home, switch to a buy to let mortgage on it, and rent it out. The new home would become our permanent full time residence.

    Would this mean we’d be liable for paying an extra 3% Stamp Duty on the new house? The guidance online seems contradictory and dependent on things like whether you’ve lived in the home you intend to rent out. Also, the law appears to be due to change after Nov ‘18 but we won’t be close to completing on a purchase by then.

    Can anyone answer this in plain English for me please? Thanks so much.
  2. lookinginvest

    lookinginvest Member

  3. diyhelp

    diyhelp Active Member

    I hear that some people are using companies as a vehicle for their buy to let investments. It appears that the laws are different with regards to stamp duty etc.
  4. Longterminvestor

    Longterminvestor Administrator

    Without looking at the details I would assume the actual purchase of a second home, no matter what you use your first home for in the future, would trigger the additional stamp duty charge? However, from what I believe, the additional stamp duty charge was targeted at homes which were empty for a vast majority of the year. In this instance your home would not be empty, would that change anything?
  5. Simon_Misiewicz

    Simon_Misiewicz New Member

    Sadly, people that use limited companies to buy to let properties will suffer the 15% SDLT rate if it is close connection with them.

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