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Where Taxpayers and Advisers Meet


Posts: 152
Joined: Wed Aug 06, 2008 3:53 pm


Postby petergibbinson » Tue Mar 13, 2018 12:14 pm

I think I know the answer but wanted to check...
If you buy a new main residence, and dispose of your existing main residence within 3 years - you can reclaim the additional 3% SDLT.
Does it matter what you do with the existing main residence once you purchase and move into the new main residence? (i.e if you let the old main residence out for a year after moving into the new main residence - I assume you can still claim back the 3% if you sell within 3 years)
Page 26 (the examples) of the stamp duty and land tax guidance note (nov 2016) seems to say it just needs to have been your main residence within the last 3 years - but wanted to check in case I'm missing something..

Posts: 421
Joined: Fri Aug 07, 2015 2:17 pm

Re: 3% SDLT

Postby SteLacca » Tue Mar 13, 2018 4:15 pm

The legislation is at FA2003, Sch 4ZA 3(7) which lists the restrictions at a), b) & c), which state:

Code: Select all

(a)on the effective date of the transaction (“the transaction concerned”) the purchaser intended the purchased dwelling to be the purchaser’s only or main residence, (b)in another land transaction whose effective date is during the period of three years beginning with the day after the effective date of the transaction concerned, the purchaser or the purchaser’s spouse or civil partner disposes of a major interest in another dwelling (“the sold dwelling”), and (c)at any time during the period of three years ending with the effective date of the transaction concerned the sold dwelling was the purchaser’s only or main residence.
So c) limits relief to ensure that sale is within 3 years of the property ceasing to be your main residence, but does not place any restrictions on the property's use during that 3 year period.

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