Any Stamp Duty Land Tax experts out there?

[erictheone]

Here’s one for any kind SDLT expert please:

I own my main residence, bought in Nov 2014, which I don’t intend to sell.

I bought a 2nd home in Oct 2016 (NOT for buy-to-let) and paid the new 3% SDLT surcharge.

I now want to buy a 3rd home and, shortly after, sell the 2nd.

Am I right that I can claim back the 3% surcharge paid on the 2nd home, assuming I sell it within three years of buying the 3rd?

And, if so, is the claim-back achieved by treating it as part of the purchase cost when I do the CGT calculation for the 2nd home?

And if that’s all right, what happens if the gain (if any) on the sale is less than the 3% surcharge paid? Do I just have a CGT loss to carry forward or to offset against other gains?

It’s only the 3% surcharge that can reclaimed, right - not the full amount of SDLT paid on the 2nd home?

I’m hoping I’ve got this right - because it’s too important to get wrong!

All are UK properties and I’m UK tax resident.

[bd6759]

You cannot reclaim the 3%. This rule only applies if buy a new residence to replace your previous residence, and sell the previous one within 3 years.

For CGT purposes, SDLT is a cost of acquisition and is an allowable cost regardless of the rate paid. If the costs are more than the proceeds you will have made a capital loss. You must put this in your tax return so that it can be caried forward until needed.

[erictheone]

You cannot reclaim the 3%. This rule only applies if buy a new residence to replace your previous residence, and sell the previous one within 3 years.

For CGT purposes, SDLT is a cost of acquisition and is an allowable cost regardless of the rate paid. If the costs are more than the proceeds you will have made a capital loss. You must put this in your tax return so that it can be caried forward until needed.

Many thanks for quick reply, bd6759. So you're saying the 3% can only be reclaimed if you sell your previous MAIN RESIDENCE within three years. Not if you're selling a previous second home, having replaced it within three years with a different second home?

[bd6759]

Yes. That is what I said.

[maths]

I agree with bd.

The legislation refers to ""only or main residence".