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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I own multiple UK properties but my main residence is rented

Customer Question

I own multiple UK properties but my main residence is rented accommodation. Will I be subject to second home stamp duty if I move out of my rented accommodation to a new, purchased property, which then becomes my main residence?
Submitted: 8 months ago.
Category: Tax
Expert:  TonyTax replied 8 months ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 8 months ago.

Have you ever owned a property which was your previosu main residence and which was either sold or become part of your property portfolio? If so, when was it sold exactly or if you kept it when did you move out?

Customer: replied 8 months ago.
Hi Tony, our original scenario is hypothetical actually. We haven't moved out of main owned residence yet, but considering moving into larger rented accommodation (which will become our main residence) and adding current main residence to our property rental portfolio.Within 6-12 months we plan to buy and move into another property as main residence and leave our rented property. Hope that makes sense.
Expert:  TonyTax replied 8 months ago.


In the scenario you set out, you will pay the higher rate of stamp duty as you won't have replaced your previous main residence ( a rented property is not a main residence for this purpose). However, if you sell what is now your main residence within 36 months of buying a new main residence, then you will be able to claim a refund of the 3% excess stamp duty. Take a look at the original consultation document and the consultation results document here.

I hope this helps but me know if you have any further questions.