Since the new rules on the amount of Stamp Duty that you have to pay were introduced in April 2016 there have been many questions about whether or not you need to pay the extra Stamp Duty of 3% when buying property if you (and that means one of you if you are buying as a couple) already own another property.
One common question is ‘do I have to pay the extra stamp duty if I am replacing my main residence?‘
Second Home
In this situation we are talking about someone who already owns another home that perhaps they rent out. This may be a single person who owns a second property or a couple where either one or the other owns another property (or indeed both of them) but where the property that they are selling is currently their main residence and they will be buying another property that will (on the sale of that property) also be classed as their main residence.
The simple answer to this question is that, no, you do not have to pay the extra 3% stamp duty if you are replacing your main residence. You will just need to pay the standard amounts of Stamp Duty that are due on a residential house purchase and you can work out how much that will be with our online stamp duty calculator.
In fact, even if you own more than 1 extra property (you could own 5 or 10 properties) and you are selling your main residence and replacing that, you still do not have to pay the extra 3% Stamp Duty.
Key Word: Replacing
The key word here is that you are replacing your main residence. If you have a rental property but do not have a main residence and are just buying a main residence without replacing an existing one, then the extra stamp duty will be payable.
Obviously there may be circumstances where this simple answer does not apply so you should always check the finer details with your solicitor.
Also, if you do not sell your main residence but you do buy another property that will become your main residence, different rules apply.