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Where Taxpayers and Advisers Meet

SDLT surcharge relief

nawaz83
Posts:7
Joined:Fri Dec 25, 2020 11:38 pm
SDLT surcharge relief

Postby nawaz83 » Sat Dec 26, 2020 12:31 am

Hi,

I am in the process of purchasing a house to live in (currently renting). However, I currently own a flat which has been a BTL since (Apr 2019). This flat used to be my primary residence for the period Dec 2012 to Mar 2019, but it became too small so I had to rent a house instead and I let the flat out. I will be selling my BTL flat ASAP however, It is most likely the purchase of the house will go ahead prior to the sale of the BTL flat. I will also most likely have to live in the flat (primary residence) for a period of time (2/3 months) before I move into the house (house is being decorated).

If I am living in the flat for 3 months does that count as my primary residence? Bills & utilities.

I know I have to pay the 3% surcharge on completion of the purchase of the house (if this happens before the sale of the flat). But will I be entitled to a refund of the 3% surcharge if I sell the flat within 3 years of it being my primary residencem? I have full intention to sell the flat ASAP.

Thanks

bd6759
Posts:3543
Joined:Sat Feb 01, 2014 3:26 pm

Re: SDLT surcharge relief

Postby bd6759 » Sat Dec 26, 2020 1:30 pm

Sell it within 3 years of buying your new house.

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property#what-you-need-to-do

nawaz83
Posts:7
Joined:Fri Dec 25, 2020 11:38 pm

Re: SDLT surcharge relief

Postby nawaz83 » Sat Dec 26, 2020 1:51 pm

Great thanks & if I move directly into the new house from my current rented accommodation, the 3 year limit starts with reference to the date I stopped living in the flat (Mar 2019)?

SDLT Geek
Posts:224
Joined:Sun Apr 30, 2017 5:45 pm

Re: SDLT surcharge relief

Postby SDLT Geek » Sat Dec 26, 2020 5:41 pm

There are two different three-year periods to think about.

The first you are fine on already, is that last lived in the old property within the three years before you complete the purchase of the new property. You tell us that you last lived in the old property in March 2019, therefore you have three years from that to complete your purchase of the new property.

The second three-year period to think about is the three years you have to sell the old property. This starts from completion of your purchase of the new property.

nawaz83
Posts:7
Joined:Fri Dec 25, 2020 11:38 pm

Re: SDLT surcharge relief

Postby nawaz83 » Sun Dec 27, 2020 10:40 am

Great thanks, all makes sense


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