SDLT question

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Rangeroverover

Original Poster:

1,523 posts

111 months

Wednesday 21st September 2016
quotequote all
A large house was split in two many years ago person owns one half already and he now wishes to buy the other half and put it back together as one large house, will he have to pay the extra 3% sdlt on the half that he's now buying as he will be creating a single dwelling from it?
Would it help if it went back onto one title for both properties?
Thanks in advance

Rangeroverover

Original Poster:

1,523 posts

111 months

Wednesday 21st September 2016
quotequote all
As the price of the other half of the house is £1.8m not paying the extra 3% makes a huge difference how do I ask Hmrc?

Rangeroverover

Original Poster:

1,523 posts

111 months

Thursday 22nd September 2016
quotequote all
My suspicion is this scenario wasn't thought of at the drafting stage so I would think one would approach Hmrc at a senior enough level that before purchase they will give a yes or no.

So could the answer be within 36 months if put onto a single title refund is due

Or could Hmrc take the view that there has not been a disposal so no refund

I've looked at the granny annexe get out but that won't work as the two properties are worth about the same

Rangeroverover

Original Poster:

1,523 posts

111 months

Thursday 22nd September 2016
quotequote all
I'm hoping because at the end of the process you have a single dwelling, by reuniting the two halves of a house that was split in two previously, the owner will not end up with two properties, he will only have one house ;so is it reasonable that he has paid extra tax for a second property. now having put the two halves back together he does own two houses so Shirley a refund is due if done within 36 months

Rangeroverover

Original Poster:

1,523 posts

111 months

Thursday 22nd September 2016
quotequote all
No structure was originally a large grand house, it was divided vertically into two semis, probably in the 70s, one half is occupied by Mr Smith as his main home, the other half is for sale and may be bought by Mr Smith for about £1.8m, his intention is to turn it back into a single dwelling, one address, one set of council tax, one set of utility bills, one front door etc.

So he will end up owning a single property, granny annexe rule won't fly as they are worth about the same each; as there will not be a transaction/disposal within 36 months can he reclaim the 3% extra SDLT he paid on purchase