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Sam, Accountant
Category: Tax
Satisfied Customers: 7510
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I current reside in a property that I am looking to release

Customer Question

I current reside in a property that I am looking to release equity from in order to buy a larger (family) home to live in with my girlfriend and her baby.I will let out my existing property.I understand that purchase of the new home will be subject to payment of a Stamp Duty excess owing to the fact I will have the buy to let also.I would like to be tax efficient. If I move into a rental property so that my current property is strictly a buy-to-let rather than my residence, will I still be liable for the Stamp Duty excess? I'm under the impression that it only applies when you are moving from an owned residence that is not being sold.Are there other ways that I might be similarly be tax-efficient?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The intention of the Stamp Duty Land tax (SDLT) surcharge was to deter people form owning more than one home. The transaction you are contemplating will expose you to the 3% SDLT surcharge. If you dispose of the duplicate residence within three years you can have the surcharge refunded by the Stamp Office.

I am so sorry to have to rain on your parade.