3% Stamp on Second Properties

[The Moose]

I've been out of the loop, buying wise, in the UK for a few years now and haven't purchased anything within that time.

I have a couple of questions:

1. As I understand it, if you buy a property and pay the additional 3% stamp, you can claim this back if you then go on to sell a property already owned. Is this the same if you own 2 properties or 22 etc?

2. Does the amount that the 3% is change anything?

[NicoG]

The Moose said:

I've been out of the loop, buying wise, in the UK for a few years now and haven't purchased anything within that time.

I have a couple of questions:

1. As I understand it, if you buy a property and pay the additional 3% stamp, you can claim this back if you then go on to sell a property already owned. Is this the same if you own 2 properties or 22 etc?

2. Does the amount that the 3% is change anything?

What matters is how many properties you own at the point of completion on a new one.
If the answer is more than 1, you pay the additional 3& on all bands of the SDLT.

To answer your other point, If you buy a primary residence without selling your first main residence, you pay the additional 3%, however, provided you dispose of the first primary residence within (I think) 36 months, you can claim back the additional 3% you paid when acquiring the new PR

This holds even if you own, say, 345 BTL properties at the same time.

I don't understand what you're asking in point 2 I'm afraid.

Edited to say - regarding point two - I think I understand now and, no, it doesn't change anything apart how much lube you might need for the butt-fking the taxman is going to give you.

If the 3% amounted to an eye-watering amount, then of course it may be worth disposing of other properties first, but the more the PR costs, the more the baseline levels of SDLT actually deliver the arse reaming as they ratchet up...

Edited by NicoG on Tuesday 16th July 16:27

Edited by NicoG on Tuesday 16th July 16:28

[The Moose]

As I understood the rules, if you buy a new property you pay the additional 3% stamp duty. If, within a set period you then sell a property you can claim back the additional 3% stamp you paid on the new one.

Does that only apply to PPR or is it any property in your portfolio?

What I meant with the second question was if you bought a new (additional) property for £1,500,000 you would incur an extra stamp cost of £45,000. If you then sold a piece of land for £41,000, could you reclaim the full £45,000 or only 3% of £41,000 (or £1,230)?

[Dmoz83]

In the above example you could claim the full £45k back provided you are back to owning a single property.

It’s not one in one out. Ie you own 10 BTLs, buy an 11th with 3% SDLT, sell one and get the SDLT back. You still own additional properties so no refund at all.

If however you own 10 BTLs but replace your principal primary residence after some time you can avoid or reclaim the tax.

[CRA1G]

I bought a property in November last year while still owning our primary residence so we could have some work done before moving in which we did in March and completed on the first property in April,we paid the 3% added SD which we are now applying to recover... the website says it will take 35 days before the process begins... and still waiting....

[XJSJohn]

pgh said:

Eventually a cheque showed up in the post.

fk me, online this, iphone app that, and they still send a cheque

Not sure i would know what to do with a cheque given that my bank doesn't have a high street presence outside the city and canary wharf, guess i would have to post it to them ....

[survivalist]

XJSJohn said:

pgh said:

Eventually a cheque showed up in the post.

fk me, online this, iphone app that, and they still send a cheque

Not sure i would know what to do with a cheque given that my bank doesn't have a high street presence outside the city and canary wharf, guess i would have to post it to them ....

If your Bank is one of the exclusive private ones then probably. I got a refund for car tax in the form of a cheque and was amazed to find that their app allows you to take a picture of said cheque and pay it in via said app :-)

[XJSJohn]

survivalist said:

XJSJohn said:

pgh said:

Eventually a cheque showed up in the post.

fk me, online this, iphone app that, and they still send a cheque

Not sure i would know what to do with a cheque given that my bank doesn't have a high street presence outside the city and canary wharf, guess i would have to post it to them ....

If your Bank is one of the exclusive private ones then probably. I got a refund for car tax in the form of a cheque and was amazed to find that their app allows you to take a picture of said cheque and pay it in via said app :-)

not that exclusive, American jobbie with a big tower in Canary Wharf.

will have a look around the darker recesses of the app and see whats there...

[2 sMoKiN bArReLs]

pgh said:

I think our refund was closer to 70 days. Required multiple phone calls to chase also.
Eventually a cheque showed up in the post.

We filled the simple form in & the cheque arrived about 3 weeks later. I made one enquiry phone call which was actually unnecessary as the cheque was already en route.

Looks like we dropped lucky with the timing!

[The Moose]

Dmoz83 said:

In the above example you could claim the full £45k back provided you are back to owning a single property.

It’s not one in one out. Ie you own 10 BTLs, buy an 11th with 3% SDLT, sell one and get the SDLT back. You still own additional properties so no refund at all.

If however you own 10 BTLs but replace your principal primary residence after some time you can avoid or reclaim the tax.

Ok - so it's only for PPR swap or 1 -> 2 -> 1 properties owned?