SDLT - work housing allows refund on higher rate

seedyunderbelly

I have what seems to me to be a relative complicated question about SDLT, specifically getting a refund for replacing a main residence in certain circumstances. I've had a good look at existing threads, and the government's guidance document, but so far I've not found anything about the same precise situation.

I bought House A (jointly) in 2006, and lived in it. In 2010 I got a new job, and moved into accommodation tied to that job, provided without charge. I let House A out. In 2017 I bought House B (also jointly), paying the higher rate of SDLT because it is my second owned property. House B is now my main residence. I own no further property.

If I now sell House A, will I be able to claim a refund on the extra 3% SDLT I paid?

On the face of it it seems the answer is "No" - although you can sell the old house up to 3 years after the new one is bought and get the refund, for that to apply the new main residence needs to replace the old main residence, and I've read various things saying that for the old house to be considered the main residence I must have lived in it at some point in the 3 years before the purchase, which I haven't. Muddying the waters however are the following:

• I've seen suggestions that there are new rules coming in in Nov 2018 which introduce the 3 year limit (as opposed to being able to have lived in the old property at any time to make it have been the main residence). I lived in House A between 2006 and 2010, so a more relaxed time limit might help. I think this may only apply to selling then buying, which is not what I'm doing, but I'm not sure.
• When researching at the time of the purchase last year I found references to scenarios where your old house continues to be considered the main residence even after moving out, because you've moved into accommodation required for your job, such as an oil-worker on a rig,or a vicar in a vicarage. I'm a singer in a cathedral choir, but the accommodation was provided to allow convenient living near my place of work, and for tax purposes is apparently not a benefit. I can't currently find any material about this online, though. The only professional I've contacted was not aware of it off the top of her head.

Happy to provide more info if required, thanks in advance for your help!

SDLT_Geek

You appear to be caught out by the three year rules here. Because your purchase was before your sale the three year rules already apply, even for a purchase by 26 November 2018. You had not lived in House A as your main residence at any time in the three years leading up to your purchase of House B. So you cannot reclaim the 3% surcharge paid on the purchase of House B.


I expect the rules you read relating to job related accommodation are special capital gains tax rules which are not carried over into the stamp duty land tax provisions.

seedyunderbelly

Ah, thanks SDLT Geek, although of course a disappointing answer. Seems pretty clear cut about the 3 years, and you're almost certainly right about my conflating CGT and SDLT for those special rules - I had been researching CGT at the time as well, and a quick Google now is making it all come flooding back!

Thanks for the sterling work you do educating people about this stuff! :T