My husband and I are planning to sell the house we live in, which is our main residenceQ I bought a flat in 2016 and lived there for a couple of years. I then got married in 2018 and moved in to my husband’s house, which he’d bought in 2015 and which remains solely in his name. I’ve been renting out my flat ever since. We now plan to sell the house we live in and buy a new one. If I keep my rental flat will I be liable for higher rates of stamp duty?NAA No, I don’t think that you will be liable for the higher rate of stamp duty land tax (SDLT) and this is why. As luck would have it, I came across an illuminating example in HM Revenue and Customs’ (HMRC) online Stamp Duty Land Tax Manual which describes your situation almost exactly (if it weren’t for the fact that it’s the husband who has the rental property and they both live in the wife’s house). Substituting you for Mr S (in the HMRC example) and your husband for Mrs S, this is how it reads: “Mr and Mrs A, a married couple, each own a residential property, with neither having any interest in the other’s property. They both live in the property owned by Mr A; the property owned by Mrs A is rented out. Mr A is selling his property and they are jointly purchasing a new one, which will be their new main residence. Mrs A will retain her rented out property.” Continue reading…
Source : theguardian.com
Read more…Will I have to pay higher-rate stamp duty if I keep a rental flat?
