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Where Taxpayers and Advisers Meet

Stamp duty Refund

Joined:Thu Dec 19, 2019 5:16 pm
Stamp duty Refund

Postby ritzy11 » Tue Mar 03, 2020 4:04 pm

Hi Guys,

My brother has a second home on which he wants to reclaim stamp duty. He has been living in this second home as main residence for 2 years and 9 months.

He is planning on "giving away" his interest in his previous main residence this September 2020

Will he still be able to reclaim stamp duty refund after September 2020? This will take him over 3 years but i understand you have 3 months to reclaim after you "sell" or "give away" any interest in your previous main residence?

And please can you confirm that the refund calculations are correct below.
From my calculations the refund should be £9,337.50 (£14,900 - £5,562.50)

Thanks :-)

2nd property breakdown % paid
125,000 3 3750
125,000 5 6250
61,250 8 4900
Total 311,250 14,900

normal rate breakdown % LESS
125,000 0 0
125000 2 2500
61250 5 3062.5
Total 311,250 5562.5

Joined:Sat Feb 01, 2014 3:26 pm

Re: Stamp duty Refund

Postby bd6759 » Tue Mar 03, 2020 8:47 pm

He can claim a refund is he disposes of a main residence within three years. This does not mean 3 years plus 3 months.

I'm not sure what "giving away" means. What is the purpose of the parenthesis?

Joined:Sun Apr 30, 2017 5:45 pm

Re: Stamp duty Refund

Postby SDLT Geek » Tue Mar 03, 2020 8:54 pm

Why I wonder do you put “giving away” in quotes? To me it suggests that this is what he says he is going to do, but in reality he will not make an outright and complete gift.

If he does make a complete disposal of the former home then it would need to be within 3 years of last living in it. So it seems within the next 3 months. September will be too late.

If the complete disposal is made in time then there is now 12 months to submit the application for a refund.

The amount at stake is 3% of the purchase price.

Joined:Thu Dec 19, 2019 5:16 pm

Re: Stamp duty Refund

Postby ritzy11 » Wed Mar 04, 2020 4:57 pm

sorry guys by "giving away" what i meant was that my brother will be gifting his shares and not selling his shares in his previous main residence. sorry for the confusion, guess it doesn't make a difference.

Thanks for your reply - so when you say he now has 12 months. Does that mean if he can get the disposal complete by end of May this year (before the 3 years are up) he can still apply for the refund anytime before end of May 2021?

And please can you let me know what documents are necessary as evidence that the disposal has been completed.

Both my brothers will be giving away 100% of their shares in the property as a gift to my mother who also owns the property. So i'm guessing the form to fill in for this 100% transfer would be to use the TR1 form ( and not the TP1 form ) ...?

Thanks Again for your help :-)

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