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Where Taxpayers and Advisers Meet

Do I get Stamp Duty relief on my BTL property?

taxnovice212
Posts: 2
Joined: Mon May 11, 2020 9:10 pm

Do I get Stamp Duty relief on my BTL property?

Postby taxnovice212 » Mon May 11, 2020 9:29 pm

Hello my friends, I want to start by saying I know very little on tax and really want to learn more. I appreciate the information on this forum.

I live with parents and have a BTL property that I bought in 2014. I am now ready to purchase my own home with my wife, and it helps negotiations if I am chain free. Aim is to buy the home and then sell my BTL property after 1 year. The HMRC rules on stamp duty refunds states I can have a refund on the additioanl stamp duty if:

you sell your previous main residence within three years, and.
you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.

^^ In my case however, my sole property that I own is a BTL that I do not live in.

On one hand It's technically not my main residence as I don't live there, but I own no other property outside of this. So if I bought my first residential home, can I still claim stamp duty relief if I sold my BTL flat within 3 years?

Many thanks for the clarifications, and thanks for baring with future silly questions.

robbob
Posts: 2961
Joined: Wed Aug 06, 2008 4:01 pm

Re: Do I get Stamp Duty relief on my BTL property?

Postby robbob » Tue May 12, 2020 8:44 am

you sell your previous main residence within three years, and.
you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.
Hello taxnovice123 and welcome to your btl tax journey.

With regard to the above potential exemption you don't qualify for the stated reason that you have not sold your main residence.

This point is confirmed on the following random website
But replacing your main residence means that a previous one will need to be disposed of (e.g., SOLD or GIFTED).
If you are moving out of rented accommodation or, say, your parents' home, this will NOT count as disposing of your main residence as you are not an owner or part-owner of that property.
https://www.zoopla.co.uk/discover/buying/q-a-new-3-stamp-duty-surcharges/

Is it practicable for her to buy in her name only and add you to deeds late, this is itself will have added costs ref solicitor and may be no go if you need your income to secure the mortgage.

taxnovice212
Posts: 2
Joined: Mon May 11, 2020 9:10 pm

Re: Do I get Stamp Duty relief on my BTL property?

Postby taxnovice212 » Tue May 12, 2020 11:03 am

Many thanks for your reply - however I thought the additional surcharge is for additional properties.

If I have BTL Flat 1, I buy residential home 2, I don't get relief on selling property 1 anymore, because I never lived there? I would have thought because I go back to owning just 1 property I can claim relief on the additional stamp duty there..

maths
Posts: 7895
Joined: Wed Aug 06, 2008 3:25 pm

Re: Do I get Stamp Duty relief on my BTL property?

Postby maths » Tue May 12, 2020 4:40 pm

The purchase of a residential property whilst having previously purchased and continue to own a BTL means the higher rate SDLT charge applies to the new home purchase.
A subsequent sale of the BTL does not give rise to any refund of SDLT.

Robbob's suggestion re wife purchasing the home on her own will not work even if wife currently owns no property; if it worked it would drive a coach and horses through the higher rate legislation.

SDLT Geek
Posts: 194
Joined: Sun Apr 30, 2017 5:45 pm

Re: Do I get Stamp Duty relief on my BTL property?

Postby SDLT Geek » Tue May 12, 2020 9:32 pm

I agree with maths.

someone
Posts: 396
Joined: Mon Feb 13, 2017 10:09 am

Re: Do I get Stamp Duty relief on my BTL property?

Postby someone » Fri May 15, 2020 6:27 pm

Robbob's suggestion re wife purchasing the home on her own will not work even if wife currently owns no property; if it worked it would drive a coach and horses through the higher rate legislation.
If the wife has sold her only or main residence in the last three years then it might work.

SDLT Geek
Posts: 194
Joined: Sun Apr 30, 2017 5:45 pm

Re: Do I get Stamp Duty relief on my BTL property?

Postby SDLT Geek » Fri May 15, 2020 9:53 pm

A spouse having sold her own main residence in the last three years would only help if the husband had lived in the property as well as his only or main residence.


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