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Where Taxpayers and Advisers Meet

Stamp Duty Sucharge

Posts: 5
Joined: Fri Feb 28, 2020 12:51 pm

Stamp Duty Sucharge

Postby Kalzema10 » Tue Aug 04, 2020 10:55 pm

Hi Guys

Hope you are all safe, well and in good health.

I have a quick question re the stamp duty surcharge.

I currently have a BTL property in my name. I currently rent the property that I live in but am looking at purchasing another property to be my main residence. I understand that this scenario would mean that the 3% surcharge would be applicable as I am not disposing of my main residence.

I am actually also in the process of gifting my BTL to a family member. There is no mortgage on the property and the gift will be for no consideration. Therefore, no stamp duty for them. Could this also mean that I will not have to pay the surcharge, if I am gifting the BTL?

Do I have to gift prior to purchasing myself or can i buy a property, potentially pay the surcharge and then claim this back when the gift of the BTL goes through?

Any assistance will be gratefully received. thank you.

Posts: 1075
Joined: Fri May 16, 2014 3:47 pm

Re: Stamp Duty Sucharge

Postby AGoodman » Wed Aug 05, 2020 10:44 am

There's no SDLT surcharge if you only own one property when you buy (ie you have to give others away prior).

However, if you are thinking that the gifted property could be given back to you or similar in the future, you could be straying into tax evasion.

Posts: 5
Joined: Fri Feb 28, 2020 12:51 pm

Re: Stamp Duty Sucharge

Postby Kalzema10 » Wed Aug 05, 2020 12:02 pm

Thank you for the response.

The gifted property will definitely not be returned to me and I will not derive any benefit from it going forward.

What is the position if I find a property to purchase before the gift has been made? Will the surcharge apply and can I get a refund once the gift and transfer is complete?

Posts: 3252
Joined: Sat Feb 01, 2014 3:26 pm

Re: Stamp Duty Sucharge

Postby bd6759 » Thu Aug 06, 2020 8:30 pm

The surcharge is not repayable in these circumstances. It can only be reclaimed if you dispose of a house you lived in.

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