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bigduckontax, Accountant
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Higher level of stamp duty reimbursement on second property

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Higher level of stamp duty reimbursement on second property if original home is sold with 3 years of buying second property
JA: When was the property or asset sold?
Customer: It hasn't sold yet
JA: Anything else you want the Accountant to know before I connect you?
Customer: Both properties have mortgages on them

Hello, I am one ofthe experts on Just Answer and pleased to be able to help you with your question.

The sale of a duplicate home within three years will enable the surcharge to be recovered.

Be vary careful with mortgages. In this highly complex area changes to mortgage deeds can attract another tranche of stamp duty, or rather its local equivalent.

Customer: replied 8 days ago.
Thank you. How much of the stamp duty can we get back if we sell within the 3 year period? (We paid £18,000 stamp duty). Does the sale need to be completed within 3 years or just exchange?

Technically, in English land law, the exchange constitutes the sale. However, the only stamp duty, or local equivalent, refundable is the 3% surcharge.

Customer: replied 8 days ago.
Sorry just so I understand is that 3% of the £18,000 stamp duty we paid?

When the second residence was acquired you would have had to pay the 3% surcharge. Once disposed of within three years this surcharge is refunded.

Customer: replied 8 days ago.
Is it 3 % of the value of the property (£362,000) or 3 % of the stamp duty we paid (18k) Sorry im still confused and there will be a big difference between the two. Thanks

3% of the total value of the property.

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