How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask HM Accountax Ltd Your Own Question
HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 361
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
74131858
Type Your Tax Question Here...
HM Accountax Ltd is online now

I own a property in England which was my main residence. I

Customer Question

Hi, I own a property in England which was my main residence. I moved out in Jan 2019 into rented accommodation with my partner and then moved again to Scotland in July of 2019 and therefore rented my property out and have been living in rented accommodation in Scotland with my partner since. We are now looking to purchase a property in Scotland and wanting to understand if we would be liable for additional dwelling supplement? My assumption is yet but we could then reclaim this if I sold my property in England within 18 (or 36?) months of purchasing the Scotland property. I don't want to sell my property in England as don't want to disrupt my Tenant who has only recently moved in. Thanks,
JA: When was the property or asset sold?
Customer: Scotland - Not yet purchased. England - Currently owned, not intending to sell for 1-3 years depending on window for ADS
JA: Anything else you want the Accountant to know before I connect you?
Customer: No I don't think so
Submitted: 17 days ago.
Category: Tax
Expert:  HM Accountax Ltd replied 17 days ago.

Hi,

I am an advisor at JA and happy to assist you.

I am looking into your query and come back to you shortly.

Regards

HMAT

Customer: replied 17 days ago.
ok thanks. If you need any further detail, let me know
Expert:  HM Accountax Ltd replied 17 days ago.

Hi,

Yes, you are right , you'll pay SDLT on additional property. However, you can claim refund if you dispose off the previous home within 36 month.

I hope this answer the query.

If you have any further queries then please feel free to contact me.

Regards

HMAT

Customer: replied 17 days ago.
i'm ok for a phonecall if you could just provide your response via text. Thanks
Expert:  HM Accountax Ltd replied 17 days ago.

I replied to your query earlier.

Regards

HMAT

Customer: replied 17 days ago.
OK thanks, ***** ***** on revenue.scot it detailed 18 months so just to double check. I have 36 months from purchase of a property in Scotland to sell my previous main residence to reclaim SDLT? My partner is a First time buyer and was has always rented and never lived in the property I own in England? Just wanted to make sure I didn't fall into this scenario? Thanks
Customer: replied 17 days ago.
https://www.revenue.scot/example-47a-one-spouse-owns-main-residence-joint-purchase-new-main-residence-transaction-does-not
Expert:  HM Accountax Ltd replied 17 days ago.

I am talking about England tax law not Scottish tax.

https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Customer: replied 17 days ago.
ok well I'm buying in Scotland so are you able to advise on that? Thanks,
Expert:  HM Accountax Ltd replied 17 days ago.

I am only expert in England tax. However, i can check for Scotland for you.

Customer: replied 17 days ago.
happy if you need to refer me to someone else who is an expert in Scottish tax if needed. Thanks
Expert:  HM Accountax Ltd replied 17 days ago.

I have changed the category and referred to my colleagues in admin.

Customer: replied 17 days ago.
will this continue in this thread or will i receive a separate notification?
Expert:  HM Accountax Ltd replied 17 days ago.

I think it will continue in this thread.

Customer: replied 16 days ago.
Have you had an update from customer services? I have but didn’t exactly explain whether it had been referred to someone else or if you are going to look into it.Thanks
Fraser
Expert:  HM Accountax Ltd replied 16 days ago.

Hi Fraser,

I have referred you to customer services team and they should have change the category.

Let me recheck.

Regards

HMAT

Customer: replied 16 days ago.
They said they don’t have Scottish tax experts but then said that the team could review and advise. Wasn’t obvious what was happening from the email I received.
Expert:  HM Accountax Ltd replied 16 days ago.

Hi,

you have 18 months to claim the SDLT. see the link below:

https://www.revenue.scot/land-buildings-transaction-tax/guidance/lbtt-legislation-guidance/lbtt10001-lbtt-additional-dwelli-5

If you have any further queries the please feel free to contact me.

Regards

HMAT

Customer: replied 16 days ago.
Ok thanks, ***** *****’t matter that my previous main residence was only lived in by me and not my partner? It was also my main residence until jan 2019 only. Assuming the 18 month clock starts when I purchase the home in Scotland?
Expert:  HM Accountax Ltd replied 16 days ago.

It was also my main residence until jan 2019 only. Assuming the 18 month clock starts when I purchase the home in Scotland? Yes

Customer: replied 16 days ago.
Ok think that covers everything
Expert:  HM Accountax Ltd replied 16 days ago.

My pleasure, please rate before you sign off.

Regards

HMAT

Customer: replied 16 days ago.
Do I not fall into this category though as my partner didn't live with me in this residence that I left Jan 2019?
https://www.revenue.scot/example-47a-one-spouse-owns-main-residence-joint-purchase-new-main-residence-transaction-does-not
Customer: replied 16 days ago.
apologies for the follow up questions
Expert:  HM Accountax Ltd replied 16 days ago.

I am afraid think that you might fall in this category as circumstances are more or less same.

"as both buyers did not occupy that property as their previous main residence, schedule 2A, paragraph 8A of the LBTT(S)A 2013 does not apply and as such repayment of the ADS cannot be claimed."

Regards

HMAT