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Employer supplied accomm and PPR and BTL

Shropshiretom
Posts: 4
Joined: Sun Dec 11, 2016 9:57 pm

Employer supplied accomm and PPR and BTL

Postby Shropshiretom » Tue Apr 18, 2017 10:58 pm

Husband and wife reside in accommodation supplied by their employer.

They jointly own a property which they have nominated as their PPR since 2010(Property 1) which is tenanted. The wife also owns a property solely in her name - with no mortgage - which is tenanted.(Property 2).

The husband and wife wish to retire in 2018 and have placed an offer on a house in their local village to which they will retire and which will be their main residence (PPR).(Property 3).

The wife has placed her solely owned property (Property 2) on the market to help fund the purchase of their retirement house.(Property 3).

The husband and wife do not intend to sell Property 1 but keep it as a buy-to-let. They will file a PPR nomination stating that Property 3 is now going to be their main residence.

Will they have to pay the increased SDLT of 1% + 3%on the purchase of Property 3?

What if they rent out Property 3 between the purchase date of June 2017 and the date they take occupation, May 2018.

Any help would be greatfully appreciated.

someone
Posts: 66
Joined: Mon Feb 13, 2017 10:09 am

Re: Employer supplied accomm and PPR and BTL

Postby someone » Wed Apr 19, 2017 1:02 pm

In my view, yes they will have to pay the additional SDLT.

Shropshiretom
Posts: 4
Joined: Sun Dec 11, 2016 9:57 pm

Re: Employer supplied accomm and PPR and BTL

Postby Shropshiretom » Thu Apr 20, 2017 8:14 am

Thank you 'someone'. Do you think we could look for a refund once we had moved in - provided it is within 18months of purchase?

maths
Posts: 6475
Joined: Wed Aug 06, 2008 3:25 pm

Re: Employer supplied accomm and PPR and BTL

Postby maths » Thu Apr 20, 2017 1:21 pm

Presumably the job related accommodation is occupied under licence or a short lease ie the occupiers do not possess a major interest in that property for SDLT purposes.

Irrespective of any election re a main residence such election is only relevant for CGT, not SDLT, purposes.

On the purchase of P3 (the intended main residence) P2 will have been sold but ownership of P1 will remain. Thus, P3 will not have replaced an earlier main/sole residence and hence the 3% charge will apply on P3's purchase.

If both P1 and P2 are sold prior to the acquisition of P3 then the 3% charge is not automatically avoided. Prima facie, it would not seem to be the case in such circumstances that P1 was de facto a residence within 3 years of the acquisition of P3 (a condition of replacement of a residence).

Similarly, there appears to be no grounds for any reclaim of any 3% charge imposed on purchase.

Shropshiretom
Posts: 4
Joined: Sun Dec 11, 2016 9:57 pm

Re: Employer supplied accomm and PPR and BTL

Postby Shropshiretom » Mon Apr 24, 2017 12:40 pm

Thank you Maths for your answer. Guess I'll have to pay the 3%.


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