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bigduckontax
bigduckontax, Accountant
Category: Tax
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I have to pay the 8% stamp duty on our new home because at

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I have to pay the 8% stamp duty on our new home because at the time of purchase I will own another property. That property is currently tenanted. I intend to sell this property within 3 years (hopefully much sooner). Currently our family home we will be moving out of is rented (we do not currently live in our own home). My question is can I claim back some stamp duty money from the government when I sell my tennanted property (difference of 8% and 5%)? Thanks, Tom
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Yes, you should be able to reclaim the higher rate of Stamp Duty Land Tax (SDLT) in the circumstances set out in your question. Here is the advice from the Gov UK web site: 'If you buy a new main residence but the sale for your previous main residence is delayed you’ll pay the higher rates as you own 2 properties.But you can get a refund for the amount above the normal SDLT rates if you sell your previous main residence within 3 years.A refund must be claimed within 3 months of the sale of the previous main residence or within 12 months of the filing date of the return, whichever comes later.' I do hope that you have found my reply of assistance. By the way this can be done on line. You can find allabout it here: https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties
Customer: replied 1 year ago.
My concern is that the government says the house we are selling must be our current main residence. But we are renting, we are not disposing of our main residence. We are simply giving up our tenancy. It really worries me that the governments wording for reclaiming the stamp duty does not fit our situation. what are your thoughts?
Expert:  bigduckontax replied 1 year ago.
Like everything concerned with SDLT it is clouded with mystery. You are selling your sole or main domestic residence so just put in the claim. The Stamp Office can only say no.
Customer: replied 1 year ago.
it will be our sole residence, once the sale of our other property goes through. We own two properties, neither of which we currently live in. One of those properties is already sold to fund our new purchase. The other property we are speaking about remains on the market. It will not be sold until after we've moved into our new home. I am assuming this additional information doesn't really change your answer. But if it does please let me know? For me the tax reclaim would be 11200 pounds. So there is a lot riding on this for me. Many Thanks
Expert:  bigduckontax replied 1 year ago.
The key is the 'sole or main domestic residence' which presumably is the one to which you refer in your question. Please verify this assumption.
Customer: replied 1 year ago.
Thanks for your explanation. I think we could class it as our sole residence rather than main residence and as such put in a claim for a refund. Many thanks for your help, Tom
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance; you have the right idea. Please be so kind as to rate me before you leave the Just Answer site, Tom.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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