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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I own a number of BTL properties and a residential property

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I own a number of BTL properties and a residential property that I live in. If I were to remortgage to change my existing residential property to BTL and purchase a new residential property in June 2016 will I be liable for the extra 3% stamp duty. The new property will be my main and only residence. If the answer is yes and I will have to pay the extra stamp duty is there any way I can structure any transactions to avoid the extra 3% SD.
Hi. If you look here, you will see that there is a consultation going on as to how the new stamp duty rules for BTL or second home property purchases will be structured. The consultation ends on 1 February 2016 and the government will announce the new rules in the March 2016 Budget. According to the flowchart and Example 8, you will be liable for the higher SDLT charge on the new purchase because at the end of the process, you will own two properties. If you sell the one you plan to let within 18 months of buying the second, you should be able to claim a refund of the additional stamp duty. I'm not aware of any ways around the new rules, partly because they aren't set in stone yet, other than to sell the previous main residence within 18 months of buying a second. I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.
What if I were to convert my existing residential to BTL before April so that I don't have a residential property?
It's the number of properties you have at the end of the second purchase that counts, not necessarily what you do with the first. As you aren't selling the first property, the higher SDLT charge will apply.
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