Stamp Duty - Owner Occupier

My apologies if this has been covered off in separate threads, but I am finding it a little difficult to understand the stamp duty implications of the following;

I currently own a 2-bed apt (purchased as a 1st-time-buyer three yrs ago) but I am looking to purchase a newly-built property with floor area <125sqm.

My understanding is that such properties are exempt from Stamp Duty for owner-occupiers. So, if I;

a) Purchase this new property and sell my current property, am I completely exempt from SD, or will Revene claw back some in respect of my first property?

b) Maintain my current property and rent it, will I be subject to full investor SD on the new property (even if I am an owner-occ in the new property).

Once again, sorry if this has been covered elsewhere. Just finding it difficult to get information relevant to my particular situations.

Cheers,

JP

jimmypage said:

a) Purchase this new property and sell my current property, am I completely exempt from SD, or will Revene claw back some in respect of my first property?

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No - the clawback only applies if you retain and rent out the first property within 5 years of purchase as an owner occupier.

b) Maintain my current property and rent it, will I be subject to full investor SD on the new property (even if I am an owner-occ in the new property).

Click to expand...

No - you will be liable for investor SD on the first property under the clawback.

Retaining/selling your original property has nothing to do with SD on the new one. And SD on the original one only applies if/when you rent it out within 5 years of purchase.

Clubman

Thanks - that's helpful.

Last question (hopefully...) - if I do decide to rent my current property, will the SD liability work out at something like 40% of the Investor SD based on the original purchase price?

I say 40% as the apartment is roughly 3 years old.

Many thanks

JP

Purchase this new property and sell my current property, am I completely exempt from SD,

Click to expand...

Yes

or will Revene claw back some in respect of my first property?

Click to expand...

No

Maintain my current property and rent it, will I be subject to full investor SD on the new property (even if I am an owner-occ in the new property).

Click to expand...

You will be liable to stamp duty at the date you originally purchased.
In addition you will also have to pay tax on the profit on rental income and when you do decide to sell, you will also be liable to CGT on any gain made from the time you purchased the property using the following formula

Time Property Rented (less 12 months)
_________________________________
Property Owned