Sarah Bradford outlines the rules for reclaiming the stamp duty land tax paid at the higher rates on the sale of a former main residence where a replacement main residence was purchased before the previous main residence was sold.
What is the stamp duty land tax supplement?
Since 1 April 2016, higher rates of stamp duty land tax (SDLT) apply to purchases of second and subsequent residential properties where the cost of the additional property is over £40,000 (i.e. virtually all properties!). Although the measure was aimed mainly at buy-to-let landlords, it also affects anyone who has a second home, such as a holiday cottage or city flat.
Despite the supplement, where a person has more than one residential property, it is possible to replace the main residence without suffering the additional rates on the purchase of the replacement
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