I have a mortgage on my current residential home. However, I would like to purchase a new house to live in and leave the old one as a buy-to let property. I wish to leave it for my daughter for future security, but she is under-age at the moment. I presume I will fall foul of the extra stamp duty land tax (SDLT) on this second home even if it’s going to be my live-in property?

Arthur Weller replies:
Your presumption that you will have to pay the extra 3% SDLT on this second home even if it is going to be your next main residence is correct. However, if you gave away your current main residence to someone else and then bought your new house to live in, you would not have to pay the extra 3%, even though you are not selling to them (see https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800). When your daughter becomes of age, this person can give the house to your daughter. But you would have to find someone you trust. And there could be capital gains tax when this person transfers to your daughter, if the house has gone up in value. You would also have to consider the receipt of the rental income while the house is in the possession of this person.