So then, I have two flats in my name which are both let to long term tenants. I however am renting my property that I live in. I don’t want to do that forever and have been looking at buying something as a place to live in. Obviously the stamp duty is going to be pretty painful and I’m trying to work out my options to avoid being liable for it. And I think they’re non existent (unless I sell both my rental properties, presumably in different tax years, which is obviously only a long term strategy). Anything I’m missing? Thanks.
If youre the same person that posted the question recently on the Propertytribes forum then I think the answer you got there was probably the best one:
Buy the cheapest property you can find to live in for a while and then sell it, (with no CGT) to buy a decent home with regulsr stamp duty.
Hi David, thanks for this.
That wasn’t me - not heard of that forum.
How does that work sorry? I’m struggling to follow…
As it stands you will pay the regular SDLT + 5% when you buy a new home because you dont currently own your own home. Once you own your own home the additional 5% goes away. Therefore buying a home somewhere for say £40k, adding value and then selling in 6 or 8 months time in order to by a more expensive home might still be cheaper than buying the expensive one now, despite the additional transaction costs. You’d have to do the maths to know and its not an ideal solution, but there isnt one in your circumstances.