Stamp duty refund if sell rental property? Can someone explain please

[cheesymashandbeans]

Hi,

My DH and I have s joint mortgage on the house we live in and bought together. I also have s mortgage on the house I bought before I met DH, we now rent this out.

We are now thinking about moving house but have discovered that the stamp duty will be significantly higher because I have the rental house. BUT, someone told me today that if we sell the rental with a few years, we can claim the extra stamp duty paid back. We intend to sell the rental next year.

Please can anyone tell me if this is correct? That we could claim back some stamp duty?

Thank you!

Yes, AFAIK you can, but you have to sell property 2 within a certain strict time limit, at least a year IIRC, so no sense in hanging about. Google will find the details.

Within a strict time limit after buying the house you're living in, I mean, so depending on when that was, you may either not be eligible, or will need to get a move on.
Presumably you're declaring your rental income (however little after expenses) on a SA tax form - I only say this because some people don't bother and get a very nasty shock when it comes to light during the sale process, and they get hit with back tax and fines.

Have you taken legal advice?

If you are selling your main residence before you buy your new main residence (or doing it simultaneously) you do not need to pay the higher rate:

www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

It was one of the examples given in the government guidance:

Ms 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.

Thanks for responses

Yes rental is all declared to HMRC @GETTINGLIKEMYMOTHER

that's how I read it on the gov website @Buteo but everyone else is telling me I'll have to pay the higher rate... was wondering if anyone on here has the experience to advise me

No additional stamp duty to pay, just the usual rate. You don’t need to sell anything. You’ll start with two properties and end up with two properties.

Thanks @Shelley54