Stamp Duty Land Tax Manual

SDLTM09800 - SDLT - higher rates for additional dwellings: Condition D - general - Para 3(6) Sch 4ZA FA2003

Condition D will only be of relevance if at the end of the day of purchase, the purchaser owns, or is treated as owning,聽a major interest in two or more dwellings. Its purpose is to ensure that replacing a main dwelling, in certain circumstances, is not a higher rates transaction even바카라 사이트痺here바카라 사이트痶he purchaser owns multiple dwellings.바카라 사이트�聽

If at the end of the바카라 사이트痚ffective date of transaction바카라 사이트痶he purchaser only owns an interest worth 拢40,000 or more in only바카라 사이트痮ne바카라 사이트痙welling, there is no need to test if condition D applies. If no interest in any바카라 사이트痮ther dwelling바카라 사이트痠s owned, then one바카라 사이트痮f conditions A-C will already have been failed so that the transaction cannot바카라 사이트痠n any circumstances comprise바카라 사이트痑 higher rates transaction聽on account of that purchaser's circumstances.바카라 사이트�聽

Condition D is that the purchased dwelling is not a replacement of the purchaser바카라 사이트檚 only or main residence [Para 3(5)].바카라 사이트疶he definition of 바카라 사이트渕ain residence바카라 사이트� is considered in more detail at SDLTM09812.바카라 사이트�聽

The detailed rules vary slightly, depending on whether the `old` main residence is sold before or after buying the new main residence.바카라 사이트�聽

However, the replacement test can only be met by disposing of a previous main residence owned by the purchaser or the purchaser바카라 사이트檚 spouse or civil partner. The replacement test in the legislation is a replacement in terms of ownership, and not聽only聽in terms of occupation.聽

Old main residence sold before or on the same day as the new main residence is purchased바카라 사이트�聽

In this first situation Condition D will be met unless바카라 사이트痑ll바카라 사이트痮f바카라 사이트痶he following 5 conditions are聽met: -聽

1. At the time of purchase of the new property, the purchaser intends to live in the new property as the purchaser's only or main residence [Para 3(6) (a)].
2. In the three-year period preceding the purchase of the new property, the purchaser (or the purchaser's spouse or civil partner at the time) must have disposed of a major interest in another dwelling (the "old property")聽[Para 3(6) (b)]. Leaving employer provided accommodation or a parental home does not count as a disposal of a major interest in a previous main residence for the purposes of Condition D. This is the three-year disposal rule.
3. Immediately after the disposal of the old property, neither the purchaser nor聽the purchaser's spouse or civil partner had a major interest in the old property.
4. The purchaser must have lived in the聽old property as the purchaser's only or main residence at some point in the three-year period preceding the date of the purchase of the new property 聽[Para 3(6) (c)]. This is the three-year occupation rule.
5. At no point between selling the old property and buying the new property had the purchaser (or the purchaser's spouse or civil partner) acquired a major interest in another dwelling with the intention of the purchaser living in it as the purchaser's main or only residence [Para 3(6) (d)].

Leaving an assured바카라 사이트痵horthold tenancy will not count as a disposal unless the tenancy was granted for a period of more than 7 years.바카라 사이트� Equally, for Condition D, such a tenancy taken between the sale of the old property and purchase of the new property will be ignored so long as it is not granted for a term of more than 7 years.바카라 사이트�聽

바카라 사이트�聽

For the purpose of condition D,바카라 사이트痶he disposal of the previous main residence does not have to be by way of sale, although that is likely to be the case for most individuals. For example, the property may have been gifted to someone else or transferred under a court order as part of a divorce settlement.바카라 사이트�聽

Where joint purchasers (who are not spouses/civil partners) previously lived together in a property owned by only one of the joint purchasers, the disposal of this previous property will바카라 사이트痮nly meet the 바카라 사이트渞eplacement of main residence바카라 사이트� condition for바카라 사이트痶he previous owner, and not for the purchaser with no ownership interest in the 바카라 사이트渙ld바카라 사이트� property.바카라 사이트�聽

바카라 사이트�聽

Old main residence sold after the new main residence is purchased: -聽

In this second situation, Condition D will cease to be met if the following 4 conditions are聽all聽met:바카라 사이트�聽

1. At the time of the purchase of the new property, the purchaser intended to live in the new property as the聽purchaser's only or main residence [Para 3(7) (a].
2. In the three-year period following the purchase of the new property, the purchaser (or the purchaser's spouse or civil partner) disposes of a major interest in another dwelling (the "old property") [Para 3(7) (b)]. In exceptional circumstances the three-year period may be extended - see SDLTM09807.
3. Immediately after the disposal of the old property, neither the purchaser nor the purchaser's spouse or civil partner had a major interest in the old property [Para 3(7) (ba)].
4. The purchaser must have lived in the old property as the purchaser's only or main residence at some point in the three-year period leading up to the date of the purchase of the new property [Para 3(7) (c)].

Purchases before 22 November 2017바카라 사이트�聽

The rules were changed on 22 November 2017.바카라 사이트�바카라 사이트疊efore聽this date, it was unnecessary for the purchaser to have disposed of the whole of their major interest in the sold dwelling. A purchaser could have disposed of only part of their major interest and still not have met Condition D.바카라 사이트�聽

For바카라 사이트痙isposals on or after 22 November 2017 there is a requirement that neither the purchaser, nor the purchaser바카라 사이트檚 spouse or civil partner, retained a major interest in the old property following the disposal.바카라 사이트�聽

바카라 사이트�饪挴聽

Exception to the three-year바카라 사이트痙isposal바카라 사이트痳ule바카라 사이트�聽

[Para3 (6)]

Where the sale of the old main residence took place before, or on the same day, as the purchase of the new main residence and the purchase of the new main residence occurred on or before 26 November 2018, the three-year disposal rule and the three-year occupation rule (above) are both ignored.

See example at SDLTM09805

바카라 사이트�饪挴聽

Renting while replacing a바카라 사이트痯urchaser바카라 사이트檚 only or main residence바카라 사이트�饪挴聽

An assured바카라 사이트痵horthold tenancy바카라 사이트痶aken between the sale of the old property and purchase of the new property will be ignored so long as the tenancy바카라 사이트痠s not granted for a term of more than 7 years.바카라 사이트�饪挴聽

바카라 사이트�饪挴聽