Stamp Duty Second Property Refund
Discussion
My partners grandparents own a bungalow which they have lived in for many years, and last year bought a new build flat with a view to downsizing within a few months of the flat being finished. As the flat was a second property they paid the 3% stamp duty surcharge but intended they would get this back when they sold the bungalow.
They are currently living between both properties and can't really decide where they want to be, but they are now leaning towards staying in the bungalow and selling the flat.
Can they claim a refund of the stamp duty surcharge if they sell the flat? They've called HMRC who claimed nobody has ever asked and they need to put the query in writing which they did a couple of weeks ago but haven't had a reply.
They are currently living between both properties and can't really decide where they want to be, but they are now leaning towards staying in the bungalow and selling the flat.
Can they claim a refund of the stamp duty surcharge if they sell the flat? They've called HMRC who claimed nobody has ever asked and they need to put the query in writing which they did a couple of weeks ago but haven't had a reply.
quinny100 said:
My partners grandparents own a bungalow which they have lived in for many years, and last year bought a new build flat with a view to downsizing within a few months of the flat being finished. As the flat was a second property they paid the 3% stamp duty surcharge but intended they would get this back when they sold the bungalow.
They are currently living between both properties and can't really decide where they want to be, but they are now leaning towards staying in the bungalow and selling the flat.
Can they claim a refund of the stamp duty surcharge if they sell the flat? They've called HMRC who claimed nobody has ever asked and they need to put the query in writing which they did a couple of weeks ago but haven't had a reply.
Yes.They are currently living between both properties and can't really decide where they want to be, but they are now leaning towards staying in the bungalow and selling the flat.
Can they claim a refund of the stamp duty surcharge if they sell the flat? They've called HMRC who claimed nobody has ever asked and they need to put the query in writing which they did a couple of weeks ago but haven't had a reply.
I appreciate the input, but I really need a source that definitively states that the sale of the second home could qualify for a refund. Everything I've seen up to now refers to the sale of the "previous main residence" which in this case is the bungalow.
I've read the Gov.uk link previously, and it states that refunds are only allowed if you sell your previous main residence, which is not the case here. The first question on the form asks this and if you answer no, it states the form cannot be used.
Thinking about it, it is counter-intuitive that this would be allowed because fix up and flip property developers would be the biggest beneficiaries and as far as I'm aware there's no exemption for them.
I've read the Gov.uk link previously, and it states that refunds are only allowed if you sell your previous main residence, which is not the case here. The first question on the form asks this and if you answer no, it states the form cannot be used.
Thinking about it, it is counter-intuitive that this would be allowed because fix up and flip property developers would be the biggest beneficiaries and as far as I'm aware there's no exemption for them.
quinny100 said:
I appreciate the input, but I really need a source that definitively states that the sale of the second home could qualify for a refund. Everything I've seen up to now refers to the sale of the "previous main residence" which in this case is the bungalow.
I've read the Gov.uk link previously, and it states that refunds are only allowed if you sell your previous main residence, which is not the case here. The first question on the form asks this and if you answer no, it states the form cannot be used.
Thinking about it, it is counter-intuitive that this would be allowed because fix up and flip property developers would be the biggest beneficiaries and as far as I'm aware there's no exemption for them.
I purchased my new house which I moved into this feb before finally accepting an offer and selling my old residence which I completed on march 15th. I had to pay the 2nd home levy. I've read the Gov.uk link previously, and it states that refunds are only allowed if you sell your previous main residence, which is not the case here. The first question on the form asks this and if you answer no, it states the form cannot be used.
Thinking about it, it is counter-intuitive that this would be allowed because fix up and flip property developers would be the biggest beneficiaries and as far as I'm aware there's no exemption for them.
solicitor currently claiming extra stamp duty back.
I must have explained this really badly. I'll try again.
A owns a bungalow which is their main residence for the last 30+ yrs.
A buys a flat which as it is their second property, pays 3% surcharge.
A moves into the flat, but doesn't like it, so moves back to their bungalow.
A sells the flat.
Following the sale of the flat, can A claim a refund on the 3% surcharge?
If they sold the bungalow, which was their original main residence, then they undoubtedly could claim a refund. But what about selling the second property?
A owns a bungalow which is their main residence for the last 30+ yrs.
A buys a flat which as it is their second property, pays 3% surcharge.
A moves into the flat, but doesn't like it, so moves back to their bungalow.
A sells the flat.
Following the sale of the flat, can A claim a refund on the 3% surcharge?
If they sold the bungalow, which was their original main residence, then they undoubtedly could claim a refund. But what about selling the second property?
quinny100 said:
I must have explained this really badly. I'll try again.
A owns a bungalow which is their main residence for the last 30+ yrs.
A buys a flat which as it is their second property, pays 3% surcharge.
A moves into the flat, but doesn't like it, so moves back to their bungalow.
A sells the flat.
Following the sale of the flat, can A claim a refund on the 3% surcharge?
If they sold the bungalow, which was their original main residence, then they undoubtedly could claim a refund. But what about selling the second property?
The extra stamp duty is nothing about "main residence", it's about how many properties you own before and after the transaction.A owns a bungalow which is their main residence for the last 30+ yrs.
A buys a flat which as it is their second property, pays 3% surcharge.
A moves into the flat, but doesn't like it, so moves back to their bungalow.
A sells the flat.
Following the sale of the flat, can A claim a refund on the 3% surcharge?
If they sold the bungalow, which was their original main residence, then they undoubtedly could claim a refund. But what about selling the second property?
If you buy a BTL, when you already own one, the extra stamp will apply, and will be refunded if either are sold within 3 years.
quinny100 said:
I must have explained this really badly. I'll try again.
A owns a bungalow which is their main residence for the last 30+ yrs.
A buys a flat which as it is their second property, pays 3% surcharge.
A moves into the flat, but doesn't like it, so moves back to their bungalow.
A sells the flat.
Following the sale of the flat, can A claim a refund on the 3% surcharge?
If they sold the bungalow, which was their original main residence, then they undoubtedly could claim a refund. But what about selling the second property?
Right,A owns a bungalow which is their main residence for the last 30+ yrs.
A buys a flat which as it is their second property, pays 3% surcharge.
A moves into the flat, but doesn't like it, so moves back to their bungalow.
A sells the flat.
Following the sale of the flat, can A claim a refund on the 3% surcharge?
If they sold the bungalow, which was their original main residence, then they undoubtedly could claim a refund. But what about selling the second property?
As they own 2, one or the other has to be nominated as their PPR;
Having done that, I think, you need to 'live' in it for 6 months (not sure though) to get the extra SD back
Then you could sell it, move back to the bungalow and nominate that as your PPR.
Tricky one though!! to be fair, would they not be better covering new flat into a BTL? big ask though I am sure due to hassle, etc.
quinny100 said:
If they sold the bungalow, which was their original main residence, then they undoubtedly could claim a refund. But what about selling the second property?
Everything I can find suggests not. There is deliberate emphasis on main residence, to allow for a delayed substitution of homes. Later selling of the (previously) main residence, within 36 months, qualifies for a refund.I think you can wait for HMRC or take suitably qualified advice.
OP,
"Married couples and civil partners can only count one property as their main home at any one time."
From https://www.gov.uk/tax-sell-home/private-residence...
They need to go back to the solicitor they used to purchase the property and explain the situation, to see if prior to sale they need to
https://www.gov.uk/tax-sell-home/nominating-a-home
Their intent has a bearing, but you need to ensure you do not confuse that with the factual requirements of "what is a main residence", which hmrc will determine.
"Married couples and civil partners can only count one property as their main home at any one time."
From https://www.gov.uk/tax-sell-home/private-residence...
They need to go back to the solicitor they used to purchase the property and explain the situation, to see if prior to sale they need to
https://www.gov.uk/tax-sell-home/nominating-a-home
Their intent has a bearing, but you need to ensure you do not confuse that with the factual requirements of "what is a main residence", which hmrc will determine.
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