Will I pay the extra 3% stamp duty if I buy a property which will be the only home that I own and then I rent it out?
Since the introduction of the extra stamp duty tax on second home purchases, many people are thinking that this is an extra tax on buy to let properties (which was the main aim of the chancellor when it was introduced).
However, the extra tax is indeed specifically for second (or subsequent) properties, unless they are replacing your main residence. You would need to be selling your old main residence at the same time in order to not have to pay the tax at point of purchase, or else sell it within 36 months in order to claim the extra tax back.
So the answer to the question of whether you would pay the extra tax on a first home that you are going to rent out is no – whatever reason you buy your first purchase for, as long as you do not own any other property, then you do not need to pay the extra 3%.
Perhaps this might apply to people who are provided with accommodation with their job or else someone who currently rents in one area but wishes to buy in another for later in life.
If you do buy a property to rent out as your first purchase then you will need to keep in mind that if you then buy a second property as your main residence then you will need to pay the extra 3% on that purchase.