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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14278
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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What level of stamp duty is charged on purchasing a

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Sam,What level of stamp duty is charged on purchasing a residential property if I own other buy to let properties but do not own my own residential property? Purchase price £295K.Thank you.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

Thanks for asking for me and your patience

I am am afraid you will be liable to the higher additional rate (extra 3%) as this purcahse is NOT replacing a main residence but you own more than one property at the end of the transaction so a total of 8% = £23.600

Thanks

Sam

Customer: replied 4 months ago.
Thanks Sam, so if I am renting where I live and do not own a 'residential' property (the purchase would be for me to have my own residential property) it would still be 8%?

HI

Yes as advised above as you are not replacing a main residence but have more than two properties

So the additional charge arises

I know it seems unfair but you are not a first time buyer with no other property - you just have chosen to rent them out to derive an income - but if when you sell this new purcahse (which will become your main residence) and buy a furtehr main residence then you will just be subject to normal stamp duty

Thanks

Sam

Customer: replied 4 months ago.
Ok thanks very much for clarifying. If I sell my main residence within 3 years, can I claim a refund on the 3%?If so, do I have to purchase another main residence in order to claim this? So if I sell within 3 years and go and rent instead of buy, can I still claim the 3% refund?Thank you.

Hi

No as you have no main residence to be sold

Thanks

Sam

Customer: replied 4 months ago.
Thanks Sam

Hi

I am sorry the news is not better, if I could trouble you to rate the level of service I have provided (rather than it not being the answer you wanted it to be) it would be much appreciated

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 3 months ago.
Hi Sam,
Are you able to answer a PAYE question please if I send you a new question now? I tried sending it to you last week but I'm not sure if you were able to see it but it seems to be unallocated. Shall I send it again to you now?

Hi

No question has been received

Thanks

Sam