Is this stamp duty claim true?

JosGibbons

Last year, I moved away from my parents when I bought my first house. I am now living with them again and trying to sell my house. One estate agent claimed that, if I sell the house within 2 years, I can claim a refund on the stamp duty I paid. Is this true? I can find no source confirming or denying this, and I think the agent may have garbled some different rule. The closest I've found is, if you sell your first home within 3 years of buying a second, you can get a refund on the increase in the second home's stamp duty due to its being a second home. (I'm too new to hyperlink to that rule, but Google "Stamp Duty Land Tax: apply for a repayment of the higher rates for additional properties" to see the government's discussion of it.)

Selling or renting out the property has proven difficult. A couple may be interested in renting the house, depending on what they think of it after a viewing. If the sell-soon-for-a-refund claim is correct, it may not be worth taking on a renter for a long lease. I therefore need to get to the bottom of this soon.

davidmcn

JosGibbons wrote: »

One estate agent claimed that, if I sell the house within 2 years, I can claim a refund on the stamp duty I paid. Is this true? I can find no source confirming or denying this

Well, you're hardly going to find a source denying a tax rule which the estate agent has made up...it's complete nonsense. Even if you sell within 2 days you don't get any refund on the stamp duty.

The closest I've found is, if you sell your first home within 3 years of buying a second, you can get a refund on the increase in the second home's stamp duty due to its being a second home.

Yes, that one's right.

LadyGMadameToThee

Absolute poppycock! The thing to remember about EA is that they are still largely unregulated, uneducated, poor training. It's not a skilled profession - or one that requires great intelligence. Anyone can start up a selling or letting agency. That's why the market is in the state it is currently in. Take anything they say with a pinch of salt and always do your homework.

agrinnall

While it's completely untrue it does have a spin off benefit in that you now know for sure one EA not to go with.

elephantrosie

LadyGMadameToThee wrote: »

Absolute poppycock! The thing to remember about EA is that they are still largely unregulated, uneducated, poor training. It's not a skilled profession - or one that requires great intelligence. Anyone can start up a selling or letting agency. That's why the market is in the state it is currently in. Take anything they say with a pinch of salt and always do your homework.

wrong wrong. estate agents are regulated. they have to get a certain number of CPD points per year. also the one who owned the estate agent company needs to go through proper degree.

Cliveman_Pieman

elephantrosie wrote: »

wrong wrong. estate agents are regulated. they have to get a certain number of CPD points per year. also the one who owned the estate agent company needs to go through proper degree.

Oh really? And if they fail to get their 'points' will the institute of Estate Agents strike them off?

I just went on my local EA website, no mention of any professional body? The accountant and solicitor both proudly mention theirs?

Not saying you're lying but it's news to me also.

phillw

Yeah, I suspect they read this about reclaiming the second property surcharge:

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/IndirectTax/1.0/SDLT16&template=SDLT16.xdp

"Please use this form if you are requesting a refund of the Stamp Duty Land Tax (SDLT) because:
•you have paid the higher rates on the purchase of an additional residential property
•you have sold your previous main residence within 3 years of that purchase"

And assumed that it was applicable in your case.

However there is one easy way to find out what they were thinking, ask them.

ACG

As Phill says, they are getting mistaken between stamp duty on a purchase and stamp duty on a second purchase.

Cakeguts

elephantrosie wrote: »

wrong wrong. estate agents are regulated. they have to get a certain number of CPD points per year. also the one who owned the estate agent company needs to go through proper degree.

When you say proper degree I hope you mean at a real university not one of the technical colleges that calls itself a university and offers degrees the standard of an old O level.

jimbog

elephantrosie wrote: »

the one who owned the estate agent company needs to go through proper degree.

Not true. If I'm mistaken please post a link.

agrinnall

jimbog wrote: »

Not true. If I'm mistaken please post a link.

I hope you're not holding your breath while waiting for the link (or indeed, any evidence whatsoever) to be posted :eek:.