Renting house and stamp duty.

Neilw

Hi all,

I bought a house in 09 as a first time buyer, I have been told if I decide to rent the house out I would be liable for stamp duty as an investor as the house is less than 3 years old.
Is this true?

Thanks.

orchidsrpretty

From Citizen infomation
A stamp duty clawback arises where rent, other than under the 'Rent a Room scheme' is obtained within the 2-year period (or up to the date of a sale during this period) from the date of the purchase deed. The amount of the clawback is the difference between (a) the stamp duty payable at the higher rates which would have applied at the date of the purchase deed and (b) the lower duty (if any) paid as a result of getting the benefit of the reduced stamp duty rates.

For purchase deeds dated before 5 December 2007 the clawback period was 5 years. Where a property was purchased before 5 December 2007 but was rented on or after that date, there is no clawback of stamp duty relief if it is rented in the 3rd, 4th or 5th year of ownership.

Under the 'Rent a Room scheme', there is no stamp duty clawback where rent is received by the person in occupation of the house or apartment on or after 6th April, 2001 for letting of furnished accommodation in part of the house

So it is only two years you have to wait. You will also have to pay CGT if you decide to sell the house.

Neilw

Thanks,

So once I'm outside the two year period I'm ok. I don't intend to sell either.

Neil.