This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Refund

DKB72
Posts: 5
Joined: Mon Jun 10, 2019 7:23 pm

Refund

Postby DKB72 » Mon Jun 10, 2019 7:30 pm

Hello
Hope you can advise.

I had a property that I lived in then rented out then lived in then rented out. I then bought a property to live in as my main residence a year ago. As I already had the other property I had to pay the extra 3%.

I’m now selling the house I bought as my main residence and either moving to my parents or into the original property.

Will I be able to claim a refund on selling the property that triggered the surcharge? I’ll no longer own 2 houses.

bd6759
Posts: 3106
Joined: Sat Feb 01, 2014 3:26 pm

Re: Refund

Postby bd6759 » Mon Jun 10, 2019 11:22 pm

No. The extra 3% is based on the situation when you bought the house, not the situation at a later date.

DKB72
Posts: 5
Joined: Mon Jun 10, 2019 7:23 pm

Re: Refund

Postby DKB72 » Tue Jun 11, 2019 7:56 am

But isnt selling the original property and claiming the refund also a change in situation?

robbob
Posts: 2827
Joined: Wed Aug 06, 2008 4:01 pm

Re: Refund

Postby robbob » Tue Jun 11, 2019 8:15 am

I would agree with the no answer given by bd6759 for the specific question asked presuming property A is still owned/not sold within 3 years of purchasing property B.
But isnt selling the original property and claiming the refund also a change in situation?
Yes it is - so if you sell property A that was your main residence within 3 years of buying property B you may get the refund on the 3% stamp duty. Note there was no mention that property A had been sold in your first post ! its bad enough here trying to answer specific questions never mind answering questions not asked :)

DKB72
Posts: 5
Joined: Mon Jun 10, 2019 7:23 pm

Re: Refund

Postby DKB72 » Tue Jun 11, 2019 11:33 am

I would agree with the no answer given by bd6759 for the specific question asked presuming property A is still owned/not sold within 3 years of purchasing property B.
But isnt selling the original property and claiming the refund also a change in situation?
Yes it is - so if you sell property A that was your main residence within 3 years of buying property B you may get the refund on the 3% stamp duty. Note there was no mention that property A had been sold in your first post ! its bad enough here trying to answer specific questions never mind answering questions not asked :)
The poster said that it was a change in situation. So would selling the original property within 3 years...but its allowed on that. That was my point there.

I must say, this rule is absolutely galling. I was ok paying it in the first place but now it seems a little unfair that although im disposing of a 2nd property in little over 12 months I'm still having to pay it.

robbob
Posts: 2827
Joined: Wed Aug 06, 2008 4:01 pm

Re: Refund

Postby robbob » Tue Jun 11, 2019 12:29 pm

I must say, this rule is absolutely galling. I was ok paying it in the first place but now it seems a little unfair that although im disposing of a 2nd property in little over 12 months I'm still having to pay it.
i do agree from a fairness point of view if you now have one property only and you have sold one of two former residences both of which were main residences within last 3 years it does seem unfair and wrong that it would matter which one was sold. I guess the only defence would be - that is what the rule was when you bought and you knew that (perhaps you didnt? though? ) when you bought so you base your decision to buy or not (and subsequent sales) on those rules.

Hopefully there is something i am not aware of that would that might come to your rescue but i am guessing there isn't.

DKB72
Posts: 5
Joined: Mon Jun 10, 2019 7:23 pm

Re: Refund

Postby DKB72 » Tue Jun 11, 2019 12:38 pm

I must say, this rule is absolutely galling. I was ok paying it in the first place but now it seems a little unfair that although im disposing of a 2nd property in little over 12 months I'm still having to pay it.
i do agree from a fairness point of view if you now have one property only and you have sold one of two former residences both of which were main residences within last 3 years it does seem unfair and wrong that it would matter which one was sold. I guess the only defence would be - that is what the rule was when you bought and you knew that (perhaps you didnt? though? ) when you bought so you base your decision to buy or not (and subsequent sales) on those rules.

Hopefully there is something i am not aware of that would that might come to your rescue but i am guessing there isn't.
Thank you. Appreciate the support.

I could sell the original one also I suppose as I lived in it for a time in 2015. Not ideal though.

I'm going to write to HMRC anyway.

someone
Posts: 383
Joined: Mon Feb 13, 2017 10:09 am

Re: Refund

Postby someone » Tue Jun 11, 2019 2:53 pm

You don't have to sell A, merely dispose of it.

You could, for example, gift it to your parents. It would then form part of their estate for IHT, care home fees etc but you might be willing to risk that if you hope to eventually inherit. Rental income would be theirs too. This all probably depends on there being no mortgage though - and CGT will be in scope.

DKB72
Posts: 5
Joined: Mon Jun 10, 2019 7:23 pm

Re: Refund

Postby DKB72 » Thu Jun 13, 2019 12:56 pm

You don't have to sell A, merely dispose of it.

You could, for example, gift it to your parents. It would then form part of their estate for IHT, care home fees etc but you might be willing to risk that if you hope to eventually inherit. Rental income would be theirs too. This all probably depends on there being no mortgage though - and CGT will be in scope.
Thankyou


Return to “Stamp Duty, Stamp Duty Land Tax, SDLT”