Talk

Advanced search

Tax implications of buying the next home before we sell this one?

(4 Posts)
SquashedInTight Thu 25-May-17 22:17:37

We could do this (savings, max mortgage). Then move out and sell our current property (which is so what we need to do, judging by the response on my other thread!!). If we nominate the new house as our 'main residence' as soon as we buy it, am I right in thinking that we avoid extra tax on it? Likewise, if we sell the old property within 18 months of buying the new one?

Has anyone done this? Did it work out well?

Badgertastic Thu 25-May-17 22:57:07

We've just done this. The second property you pay an additional 3% stamp duty on. There is a calculator on the HMRC website to help you see how much it will be on your new property. Then as long as you sell the old property within 3 years you can apply for a rebate on the extra.

Badgertastic Thu 25-May-17 23:06:53

I have to say though, while it was an expensive way to move in the short term it was less stressful a move than if we had to try and keep the house tidy for viewings and do the work that needed doing to the house to sell it. It also meant we could move over a few days so could clean the new house first, then move afterwards and not have to do it at break neck speed.

DancingLedge Fri 26-May-17 01:16:00

Badger has the stamp duty situation set out.

Need to have the cash to pay 2nd home SDLT, then can reclaim when original residence sold.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now