3% Stamp Duty surcharge

kingwoody45

Long time lurker - Hi Guys

We have purchased a house and we are due to move on the 30th July
This week we have finally managed to sell out flat, however the buyer cannot complete purchase till 5th August as his solicitor is on holiday.


This 7 day mis-match however looks like it will make us liable (according to my own solicitor) to the 3% Stamp Duty surcharge for duel ownership.
The purchase of the house was never dependant on the sale of the flat but it seems ridiculous that we will be hit with a £5k HMRC bill for 7 days duel ownership (oh, I know we can claim it back, but surely there should be some sort of grace period)

Has anyone had any experience of this? How hard/legnthy is the reclaim process?

hazyjo

Have you actually exchanged? Guessing not as it's nearly a month away. tbh, it's unlikely to remain as 30 July as they're often delayed. When did you put the offer in? Most chains take around 12 weeks average.


If not fixed, I would be delaying it by 5 days citing this as the reason - however, as above, I doubt you'll have to as it'll no doubt be delayed anyway!


Jx

booksurr

kingwoody45 wrote: »

for 7 days duel ownership (oh, I know we can claim it back, but surely there should be some sort of grace period)

and if the grace period was 6 days you would still say it was unfair.

there is no grace period because that would make the whole principle pointless. Complete on the same day and you do not pay. Have a gap between purchase and sale and you must pay and then reclaim - the rule is very clear.

kingwoody45

booksurr wrote: »

and if the grace period was 6 days you would still say it was unfair.

there is no grace period because that would make the whole principle pointless. Complete on the same day and you do not pay. Have a gap between purchase and sale and you must pay and then reclaim - the rule is very clear.

Yes I would. But if the grace period was 28 days I wouldnt.

Frankly its a nonsense that the single biggest purchase anyone ever makes in their life, a house, all has to be rattled together as part of a massive chain on the same day.
We are obviously buying and selling not using multiple house for profit, which, would be my understanding as to why this surcharge was brought in. I knwo I should expect better than to look for common sense......

TBagpuss

There is provision for an overlap, it's just that you have to pay the tax and then apply for a refund, rather than being exempt.

https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties

hazyjo

kingwoody45 wrote: »

Frankly its a nonsense that the single biggest purchase anyone ever makes in their life, a house, all has to be rattled together as part of a massive chain on the same day.

Seems logical to me. Do you have an alternative suggestion? If one buys, you expect the house you buy to be empty. So where would the vendor go? And you can't do it the other way, complete on something you're buying before your sale has gone through (presumably for obvious reasons). I suppose we could all be forced into rented for at least 6 months - but I, for one, would never move lol


Anyway, as said, you'll prob be able to tie them both together anyway.


Jx

kinger101

Given you have 30 days from the transaction to pay the stamp duty, I might be inclined to call my local stamp duty office and see if they're willing to come to an informal arrangement. The worst that can happen is they'll say no, but it does actually make their life easier if they don't have to process the refund.