Example A – Customer owns a house as a ‘main residence’ and is purchasing a buy-to-let property – the higher rate does apply.
Example B – Customer owns two houses, a ‘main residence’ and a buy-to-let. They sell their main residence and purchase another – the higher rate does not apply.
Example C – Customer has a house as a ‘main residence’ and is purchasing a new ‘main residence’ however they have chosen to let the existing ‘main residence’ instead of selling it – the higher rate does apply.
Example D – Customer owns a house as a ‘main residence’ and is purchasing a new ‘main residence’ however they have not yet sold the initial ‘main residence’ – the higher rate does apply but the 3% can be claimed back when the original residential property is sold as long as the sale completes within 36 months of purchasing the new residential property.
The government intend to treat married and civil couples living together as one entity; property owned by either partner will be considered when applying the higher rate of SDLT, i.e. an individual purchasing a property may attract the higher rate if her/his husband/wife owns another property.
This flow chart is from the government’s own website & is aimed to help clarify !!!