SDLT return

Freddyboy

Hello.
I could do with some advice on the SDLT form that my solicitor will be completing for me.
Background is I sold a property that was my main residence (property A) 3 months ago and moved into another property I own (property .
I still live there and have now bought another property (C) which will hopefully be completed in another 3 months.
I am selling B at same time as buying C.
Questions that I have are :-

1) I dont think I will be liable for Higher Rate Stamp Duty on my purchase because at the end of the transaction I will only own 1 property.

2) Real issue is I have owned property B for 10 years & I have been renting it out until fairly recently.

Now that I have moved into this property B, it has become my main residence as I pay full Council tax etc and have genuinely been living there for 3 months.

When the SDLT1 return is completed will I have to disclose the fact that I will have only lived there for approx 6 months thereby making me liable to pay Capital Gains Tax on the increase in value for the past 9 1/2 years? ie do they ask you not only about when you occupied it but also when you bought it?

I realise this is a Stamp Duty form not Capital Gains tax and it is up to me to declare CGains tax liability through my self-assessment but just wondered what questions were asked on the form about length of occupancy.

Thanks in anticipation of your help.

Freddy

Bluebirdman_of_Alcathays

Huh? The SDLT form doesn't ''make you liable for CGT' - you are liable!

Genuinely confused as to what you're asking.

Freddyboy

Hi, thanks for replaying so soon.

Yes just trying to ascertain if this return asks you about your purchase and sale solely to calculate whether you are liable to pay Higher Rate SDLT .

Not sure if it is also used to calculate the extent of any CGT as well or not?

Ive not seen the form nor any of the questions it asks which would be a great help.

Can I get one myself from HMRC or should I just leave it for my solicitor to complete on my behalf?
Not sure what to do for the best.

Thanks

davidmcn

The SDLT return is just your self-assessment about how much SDLT you should be paying for your purchase of Property C. If that will be your only property at the end of the day (because you are simultaneously selling Property , then Property B is completely irrelevant and you won't be answering any questions about it.

Freddyboy

Brilliant. Thanks very much for your short and succinct answer to my very long winded and complicated question.

That;s what I was thinking.

I,m sure, if that’s the case I could probably do it all myself but looks as though my solicitors are doing it on my behalf so best not upset the apple cart too much.


I’m very grateful.

Presumably then the onus is on myself to declare the CGTax liability through my self assessment.

Freddy

booksurr

not exactly difficult to find the list of questions on the SDLT 1 form since the notes that explain what each question asks are readily available:

https://www.gov.uk/government/publications/sdlt-guide-for-completing-paper-sdlt1-return/guide-for-completing-paper-sdlt1-returns

Obviously you are liable for CGT. The tone of your question implies you are looking for ways to fiddle it and do not want info on one form which can be cross checked with info on another form? Then again perhaps you intend to be honest and declare the correct purchase date and the full length of the CGT liable period when you complete your tax return since the onus is on you to self assess your CGT liability. One would hope so since HMRC already know when you purchased the property anyway, just the same as they already know when you sold property A, so they already know the liable period themselves, they are just waiting for you to sell property B so you crystalise the gain and trigger the CGT calculation.

One assumes you are aware of the fact you are eligible for PRR of 18 months duration given you have genuinely lived there as your main home? I assume you are also aware that as a result of PRR you will also get letting relief? If not, read this

http://forums.moneysavingexpert.com/showpost.php?p=69071134&postcount=6

Freddyboy

Thanks Booksurr for your reply.
I can assure you I,m not trying to fiddle anything,
I have no intention of breaking the law as this would be not only illegal but totally contrary to all the principle I have upheld throughout my entire life and would be highly embarrassing to say the least bearing in mind my current “occupation”.
The only reason I asked is that for the vast majority of the time the property was occupied by my elderly mother who died last year aged 87 . There is in existance a Declaration of Lifetime Trust which, could alleviate me from the vast majority of any CGT liability but it has only just come to light and has not previously been approved by anyone at HMRC.
I would much rather pay any CGTax rather than try to “fiddle” anything by now retrospectively trying to get the Trust document approved.
I am also slightly confused as your reply totally contradicts the previous reply from another forum expert?

Freddy

booksurr

Freddyboy wrote: »

I am also slightly confused as your reply totally contradicts the previous reply from another forum expert?

what other reply?
there are only 2 replies to this thread, both I and birdman say you are liable for CGT, but you knew that anyway so where is the contradiction?

Freddyboy

I was referring to the reply from davidmcn yesterday.
I appreciate though he was talking purely about the SDLT1 form and we are now mainly concerned with CGT liability, 2 seperate issues.