It seems to catch a lot of people out. Both my estate agent and mortgage adviser (who is very good, not the type to make mistakes) warned me that since we own our old BTL property, we'd have to pay the 3% and reclaim it. One could argue it's needlessly complicated...
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Originally posted by MaryPoppinsOriginally posted by vetran -
What if the home I am buying will be my main residence?
'Main residence' refers to the home you live in, not just a property you own. And which home is your main residence will be judged as a matter of 'fact' (for example, where you spend most nights, where the rest of your family lives, where you are registered to vote and where you are signed up to local doctors and dentists). You won't be able to 'elect' a main residence as you can for the purposes of Capital Gains Tax.
If the home you are buying replaces your main residence, you will not be liable for the 3% surcharge, even if you own an additional property/properties (such as a second home, or let flat) at the same time. This example is straight from the Government's consultation document:
"A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply."
But replacing your main residence means the last one (or at least a 'major interest' in it) will need to be disposed of (eg, SOLD or GIFTED). If you are moving out of rented accommodation or, say, your parents' home this will NOT count as disposing of your main residence as you are not an owner or part-owner of that property.
Read more at Q&A: The 3% Stamp Duty surcharge on second homes - Zoopla
<**** OFF> Mordy + Atw </**** OFF>What happens in General, stays in General.You know what they say about assumptions!Comment
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