Return of Stamp duty on BTL / second home ...
Discussion
I've asked something similar before but - we want to sell a property; we bought it one year ago and paid the extra (second home) stamp duty. We were told by our accountant that we could sell the property within three years, to get that extra stamp duty back.
So today I set the wheels in motion and tell my accountant - who now says that whilst I do have three years to claim it back; a form MUST be filed within 12 months of the stamp duty being paid on the original purchase - to allow us the option of stamp duty return. This is news to me and so I email my solicitor - who did the original purchase; he knows nothing and has been on the HMRC website looking for an answer.
I am going to be calling HMRC later on to try and get a definitive answer - but really this is what I pay my accountants / solicitors for... to know about this stuff. I'm pretty frustrated as; if a form DOES have to be filed within 12 months of the original stamp being paid - then I may be a couple weeks out / and a lot of money out of pocket.
Why aren't these new rules made simple and why aren't the people who's job it is to understand them; able to give an exact answer?
Rant over.
Does anyone here know the ins and outs of this?
So today I set the wheels in motion and tell my accountant - who now says that whilst I do have three years to claim it back; a form MUST be filed within 12 months of the stamp duty being paid on the original purchase - to allow us the option of stamp duty return. This is news to me and so I email my solicitor - who did the original purchase; he knows nothing and has been on the HMRC website looking for an answer.
I am going to be calling HMRC later on to try and get a definitive answer - but really this is what I pay my accountants / solicitors for... to know about this stuff. I'm pretty frustrated as; if a form DOES have to be filed within 12 months of the original stamp being paid - then I may be a couple weeks out / and a lot of money out of pocket.
Why aren't these new rules made simple and why aren't the people who's job it is to understand them; able to give an exact answer?
Rant over.
Does anyone here know the ins and outs of this?
Agreed. I have spoken with HMRC and they were helpful but admitted it comes down to the discretion of the team in each case where the waters are murky.
In my case, I had a previous residence and so did my partner - hers became a BTL and mine also. But this was our first official main residence as a couple / joint purchase and our previous homes, whilst still owned - are now rental properties. The chap on the phone sounded a little confused with it all and admitted it could be worth writing in with great detail of the situ'. These new rules are fine when every situ is black white cut and dry but many, like me, won't be in that situation .
I think it's a joke that things like this are up to discretion. We're talking tens of thousands of pounds and it could come down to what kind of day the 'team' are having. But in the space of a morning, I've had three different answers as to the likely outcome. It's very frustrating.
In my case, I had a previous residence and so did my partner - hers became a BTL and mine also. But this was our first official main residence as a couple / joint purchase and our previous homes, whilst still owned - are now rental properties. The chap on the phone sounded a little confused with it all and admitted it could be worth writing in with great detail of the situ'. These new rules are fine when every situ is black white cut and dry but many, like me, won't be in that situation .
I think it's a joke that things like this are up to discretion. We're talking tens of thousands of pounds and it could come down to what kind of day the 'team' are having. But in the space of a morning, I've had three different answers as to the likely outcome. It's very frustrating.
I've posted a thread on this subject and reached the conclusion that actually it's very simple.
If you own one property and you lived in it, and you buy second property to live in before you sell your existing property, you pay the surcharge but you have 3 years to sell your previous property and claim the stamp duty surcharge back.
You can only get the money back if you sell your previous single property. Period.
If you let the previous residence, you technically can't claim although if you negate to mention you've rented it the reality is you might get away with it.
You can't claim it back if you sell your new residence or any other residence or property you own.
You were badly advised because as joint owners you already owned 2 properties between you (it makes no difference whether they were joint or individually owned) and bought a third so you would never have been eligible for a refund anyway, even if you left them both empty. You probably should have disposed of one of the properties before you bought the new one.
The tax is there to hit property speculators and deter amateur BTL. In this case it seems to have had the desired effect. The concession is only there for homeowners who for whatever reason can't organise an immediate move. In my case elderly relatives bought a flat to downsize to which didn't suit and after a few months they moved back to their bungalow and sold the flat. No refund.
If you own one property and you lived in it, and you buy second property to live in before you sell your existing property, you pay the surcharge but you have 3 years to sell your previous property and claim the stamp duty surcharge back.
You can only get the money back if you sell your previous single property. Period.
If you let the previous residence, you technically can't claim although if you negate to mention you've rented it the reality is you might get away with it.
You can't claim it back if you sell your new residence or any other residence or property you own.
You were badly advised because as joint owners you already owned 2 properties between you (it makes no difference whether they were joint or individually owned) and bought a third so you would never have been eligible for a refund anyway, even if you left them both empty. You probably should have disposed of one of the properties before you bought the new one.
The tax is there to hit property speculators and deter amateur BTL. In this case it seems to have had the desired effect. The concession is only there for homeowners who for whatever reason can't organise an immediate move. In my case elderly relatives bought a flat to downsize to which didn't suit and after a few months they moved back to their bungalow and sold the flat. No refund.
Edited by quinny100 on Wednesday 26th July 23:16
Gassing Station | Business | Top of Page | What's New | My Stuff