Readers’ forum: SDLT surprise

A married couple have been living in job-related accommodation (a school boarding house) for the past 25 years. They own two properties which are rented out. An election was made to treat one of these as their main residence for capital gains tax only or main residence relief purposes. They paid the 3% stamp duty surcharge on both properties but have never lived in either.

They will soon cease to live in school accommodation and have made an offer of £475 000 for a third (and larger) property into which they plan to move.

I have advised them that they will have to pay the 3% stamp duty land tax surcharge (£14 250) because the £475 000 property does not replace a main residence that was sold in the previous three years. Also they will only avoid the 3% surcharge if they sell both let properties before they complete...