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Where Taxpayers and Advisers Meet

do i pay the 3% sdlt

rough3b
Posts: 4
Joined: Thu Feb 09, 2017 5:27 am

do i pay the 3% sdlt

Postby rough3b » Thu Feb 09, 2017 5:46 am

im currently in the process of buying a house which is to be my main residence, im going to exchange contracts on the same day,as my house, which is my currant main residence, is already sold and the new property is vacant and ready to move into. I also own another property which is a rental property.after reading the governments sdlt bill and other articles I thought I would be exempt from the 3% extra sdlt as the properties involved will be my main residence but the solicitor who is handling the purchase says I must pay the 3% ,not sure what to do as I cant reall y afford the extra tax ,help me please.thank you

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: do i pay the 3% sdlt

Postby section 44 » Thu Feb 09, 2017 11:35 am

The extra 3% SDLT will not be due.

rough3b
Posts: 4
Joined: Thu Feb 09, 2017 5:27 am

Re: do i pay the 3% sdlt

Postby rough3b » Thu Feb 09, 2017 3:30 pm

Thank you time to chance solicitors I think

maths
Posts: 7550
Joined: Wed Aug 06, 2008 3:25 pm

Re: do i pay the 3% sdlt

Postby maths » Thu Feb 09, 2017 4:59 pm

The 3% is inapplicable if the new purchase is a replacement for your only or main residence.

This means that "completion" (not "exchange") on the property being sold must occur on or before "completion" on the new purchase (if not 3% payable but then reclaimable).

rough3b
Posts: 4
Joined: Thu Feb 09, 2017 5:27 am

Re: do i pay the 3% sdlt

Postby rough3b » Fri Feb 10, 2017 9:07 pm

that is what I thought,i have access to free advice from another solicitor,who is not dealing with my purchase of the property, through union at work and they still say I must pay the extra 3% how can I get this through to them.thanks for your help

maths
Posts: 7550
Joined: Wed Aug 06, 2008 3:25 pm

Re: do i pay the 3% sdlt

Postby maths » Sat Feb 11, 2017 2:21 pm

You ask them for their legislative justification that the 3% SDLT charge applies.

You tell them that FA 2003 Schedule 4ZA paragraph 3(5) is not satisfied as para 3(6) is satisfied (ie you will be replacing your sole/main residence and thus the 3% SDLT charge does not apply).

rough3b
Posts: 4
Joined: Thu Feb 09, 2017 5:27 am

Re: do i pay the 3% sdlt

Postby rough3b » Sat Feb 11, 2017 9:06 pm

oo yes I cant wait to email them that thank you very much indeed,i was thinking of just paying it my self,but ill still send that email!!


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