New announcement. Learn more

CHARTERED ACCOUNTANTS (ICAEW)

News and advice to help make your property business a success

LANDLORDS FINANCIAL BLOG

All

Landlords Tax Property Tax Landlords Tax Returns Landlords Accounts Property Tax Return Property Accounts Landlords Financial Tax Returns Tax Landlords Accountant Chartered Accountants Online Accountant Online Bookkeeping Online Tax Returns Your Online Accountant Your Online Bookkeeper Businessadvice Accounting VAT Cashflow Property Accountant Smallbusiness Businesstips Capital Gains Tax Dividends Expenses Ihtexemptions Inheritance Tax Property SDLT Taxplanning Cgt Furnished Holiday Lettings HMRC Income Tax Investment Property Tax NIC PAYE Pension Property bookkeeper Taxreturn Allowable Business Expenses Annual Exempt Amount Business Expenses Business Rate Capital Allowances Capital Gains Capital gains tax property Cashbasis Compliance Deductibleexpenses Disincorporation Employment Allowance FHLs Finance Financialmanagement Gifts HMRC complaints Holiday Lets Tax Lettings Making Tax Digital MakingTaxDigital Mileage Allowance Mobilephones National Insurance Overlaprelief Partnership Partnershipbusinesses Ppr Property Company Tax Property Tax Deductible Expenses Propertyallowance Reimbursedexpenses Rent a Room Relief Residence Relief Small Business Tax free income Tax Relief TimetoPay VAT invoice 60 day capital gains limit Abolitionclass2 Accrualsbasis Acquisitions Advisoryfuelrates AI AirBnB Alphabet shares Amap Annual Tax on Enveloped Dwellings Appeal Artificial intelligence Assessment Asset disposal Associated Company Associated Company Tax Rules Autumnstatement Bad Debt Bad Debt Tax Relief Baddebts Badgesoftrade Beancounter Benefits in Kind Breakeven Point Budget Business advice Business asset deferment Business coach Business Continuity Business Entertainment Business Rates Business Rates Relief Business tips Businessgrowth Businesstypes Buy or Lease Equipment Buytolet Capital Allowances for Cars Capital Gain Capitalallowances Capitalexpenditure Car Capital Allowances Carry Back Losses Change of Tax Basis ChatGPT Child Benefit CIS Scheme Common Tenant Companies Expenditure Companies House Company Account Deadlines Company Account Filing Company Strike Off Company Tax Efficient Property Companyassociation Companyloanstaxfree Compulsory Strike Off Construction Industry Scheme Contacthmrc Contentmarketing Contributions Corporation Tax Losses Corporation Tax New Regime Corporation Tax Rates CorporationTax Costs Cryptocurrency Customerlistimplications Deductible Business Expenses Deductions Demerger Depreciation Development Directors Directors Loans Directorsloans Disallowable Business Expenses Discovery Dividend allowance Dividend Allowance Reduction Dividend Planning Dividendallowance DLA Domestic Items Tax Relief Dormantcompany EIS Employee Discount Employee management Employeecompensationpayments EmployeeOwnershipTrust Endoflifeplanning Enquiry EnterpriseResourcePlanning Entertainment Entrepreneurmindset Equity Expenses Allowed For Tax Extrabenefit Eyetests Flipping Furnished Holiday Lets Tax Gift Aid Gift Allowance Growthhacks Help to pay tax bills HICBC HMO Licensing Fees Holdoverrelief Holiday Lettings Tax How to apply for a Business Loan How to Extract Profit Humour Hybrid Illegaldividends Income Inflationary Gains Influencers Inheritance Tax Nil Rate Band Interest Rates Interestrelief Interestrestriction ISA Joint Tenant Keypersoninsurance Landlord Repairs Landlords Self Assessment Late vat registration LBTT Leadgeneration Leadmagnet Leanbusinessmodel Letting Agent Disbursements Letting Agent Recharres Lettings Relief Limitedcompany Liquidation Demerger Loaninterest Long Lets Tax Longservice LTT Mainresidencerelief Managed Lets Management accounting Maritalhomedivorce Marriage allowance Marriageallowance Mileage payment Minimumwage Mixedusesdlt Mortgage costs Mortgage Interest Relief New property Newcompanycarfuelrates Newnicrules NIC 2023 to 2024 NIC savings Nicdisregard Nicreduction NMW Nmwerrors Non Allowable Business Expenses Non-taxable Nudgeletter Optiontotaxvat Overpayment Relief Paperform Parttime Patternofoccupancy PAYE by Direct Debit Payrolling Penaltypoints Pension Payments Tax Relief Pensioncontributions Pensions Performance-reviews Periodofgrace Periodsofabsence Personal Expenses Personal finance Personalallowance Personalguarantees Postcessationrelief Pretradingexpenses Profit Profit-and-loss ProfitAndLoss Property Allowance Property Development Company Property Incorporation Property Investment Company Property investor accounts Property investor tax tips Property Letting Property Rental Business Property Trading Propertycompany Recharges by Estate Agents Regularpayments Relief Rent your drive Rental Rentaroom Research & Devolopment Residential property gains Residentialsdlt Retail stock control Retainedprofits Revenue Room for rent tax Rti SA Salary Savings SDLT changes Section 455 Tax Section455tax Selective Licences Landlords Self Assessment Self-employednic Selfemployed Selling Online Seperation Servicecharges Settlementslegislation Simplified Expenses Smallbiz Smallbusinessraterelief Software Sole Trader Spring Budget Staffparties Stamp duty SuccessJourney Tax Allowance on Driveways Tax Allowances Tax Break Tax Codes Tax Deadlines Tax Deductions Tax Filing Deadlines Tax Free Childcare Tax on Company Vans Tax position Tax tips for landlords Taxbillpayments Taxconsequences Taxincentives Taxposition Taxpositionassets Taxrelief Taxreliefs Taxses Terminationpayments Tips Trade professional Training Transfer Assets Transfer Assets Between Spouses Umbrellacompany Undisclosedincome Unpaid Rent VAT Bad Debt Relief VAT Deadlines VAT Disbursements VAT Penalties VAT registration VAT Reverse Charge Vatpenalties Vatregistered Vatregistrationthreshold Wellbeing Working from home

TAGS

The SDLT supplement and changing your main residence

June 5, 2024

In most cases, a higher rate of stamp duty land tax (SDLT) applies to the purchase of second and subsequent residential properties in England and Northern Ireland where the consideration is at least £40,000. The supplement increases the residential rates by 3%.

However, even where a person owns two or more properties, they can replace their ‘main residence’ without having to pay the supplement.

The ‘main’ residence

It will usually be clear which property is a person’s main residence. For example, if a person has one house in which they live plus two investment properties that they rent out, the house in which they live will be their main residence. However, where they split their time between two or more properties, it is necessary to consider the facts as to which is their main home, taking into account where the taxpayer’s family is based, where the children go to school, where the taxpayer is registered to vote, etc. The main residence may not be the place where the taxpayer spends most of their time. For example, if the taxpayer has a city flat in which he lives Monday to Friday and a family home where the family are based full-time and he spends his weekend, the family home will be considered the main residence.

The main residence for SDLT may not necessarily be that nominated as such for capital gains tax purposes.

Exchanging the main home

The SDLT supplement does not apply where the taxpayer exchanges his or her main home. The position is straightforward if the sale of the former home completes before or at the same time as the purchase of the new home. In this situation SDLT is charged at the normal residential rates.

However, if the purchase of the new home completes before the sale of the old home so that the taxpayer owns both the new and old main residences simultaneously, the SDLT supplement must initially be paid on the purchase of the new home on top of the usual residential rates. However, the supplement element can be reclaimed when the former main residence is sold, as long as this is within three years of the date on which the new main residence was purchased. In exceptional circumstances, this period may be extended.

To claim the refund, the SDLT return must be amended using form SDLT 16 to show that the purchase of the new residence is no longer a higher rate transaction. This must be done within 12 months of the sale of the previous residence or, if later, 12 months of the filing date for the SDLT return for the new main residence. It is important to claim the refund as it is not given automatically.

SDLT

Landlords Tax

Landlords Financial

Landlords Accountant