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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7963
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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By buying your second home first you can avoid the extra 3

Customer Question

Hi By buying your second home first you can avoid the extra 3 per cent charged to those who buy an “additional property” such as a holiday home or buy-to-let, in some circumstances, says Sean Randall, a stamp duty expert at the accountancy firm Blick Rothenberg.Because of a technicality in the wording of the rules set out by the taxman, if you can prove that the second property you buy is a main residence, and not an additional one, you will pay only a standard stamp duty rate, he says.You must also be able to demonstrate that your life is more focused on the second home. For example, that your children go to school locally and you are registered with a GP.
JA: Have you talked to a tax professional about this?
Customer: hi I read in the times yesterday what I just sent
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: I was wondering if this is correct. im in the process of buying a second home, to be my main residence, but keeping my flat to rent out and thought this sounded much like the article. Will I need yo pay the 3% stamp duty on 2nd home
JA: What is your retirement age?
Customer: I’m self employed, bu I think around 65 hopefully
Submitted: 6 days ago.
Category: Tax
Expert:  taxadvisor.uk replied 6 days ago.

Hello and welcome to JustAnswer. I’mCustomer a UK qualified accountant. Reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 6 days ago.

Thank you for your question.

You will have two properties at the end of the transaction and will have to pay extra 3% stamp duty. As you are not selling your main residence to move into another property as main residence the extra stamp duty applies.

You may not like the answer, but as a professional, I have to give you the best advice possible based on the facts.

My aim is to give you a professional service. I hope this is helpful and answers your question.

If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 6 days ago.
Thank you
Expert:  taxadvisor.uk replied 6 days ago.

Thank you for your reply.

If there are no other issues I will appreciate if we could regard my responses/answer to this question as accepted.

Many thanks