Higher rate stamp duty - late application

simonineaston

Hi, elsewhere on MSE forums, we read that the criteria for applying for a rebate of the higher rate of stamp duty can be hard to interpret correctly. I thought I'd take the opportunity to describe my own recent experience for your consideration.
The commonest mistake, I think, is to assume that you have three years in which to make an application... That's only half the story - you are entitled to apply for the refund, provided you sell house A within three years of buying house B, BUT don't dawdle as two other clocks are ticking...
In Sept. 17, I bought a second property (house into which I moved. I sold house A some 9 months later. Naturally, I paid the higher rate stamp duty on my purchase of house B. I told the conveyencer that I'd look atfer the rebate arrangements myself. In October this year, I completed the appropriate form - SDLT 16 - and posted it to the relevant HMRC office.
Although the sale of house A took place within 3 years of buying house B, my application for the rebate was made more than 3 months after the sale of house A and more than 12 months after the purchase of house B, thus my application didn't conform to the criteria described on the form. I was aware of this when I applied and so I included a covering letter, briefly descibing my circumstances and why I felt they were in mitigation of my failure to meet the criteria.
My impression, having read several items on the 'net, is that HMRC were unlikely to be sympathetic - it is, after-all, their job to apply the rules & collect taxes on behalf of the Good Queen's Government - so I was suprised and delighted when I received a cheque y'day for the full amount of the rebate.
Moral: If you miss the deadlines, do still apply - you never know!! Better still - don't miss the deadlines - make sure you understand the rules. If in doubt get advice when you buy house B.
(I have written the above in good faith, but if you spot any factual errors in my writing, please (I know you will!) point out my error...)

Tom99

“[FONT=Verdana, sans-serif]HMRC must have your request within 3 months of the sale of your previous main residence or within 12 months of the filing date of the return, whichever’s later.” [/FONT]
[FONT=Verdana, sans-serif]Interesting, thank you.[/FONT]

00ec25

Tom99 wrote: »

][FONT=Verdana, sans-serif]Interesting, thank you.[/FONT]

yes, those are the rules and always have been.
People forget there are 2 aspects:

1. are you entitled to claim - explained by the 3 year rule

2. how do you claim - explained by this:
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09809

SDLT_Geek

News from the Budget today: HMRC are extending the time limits, but only for future claims relating to sales completing on after today https://www.gov.uk/government/publications/changes-to-the-higher-rates-of-stamp-duty-land-tax-for-additional-dwellings/sdlt-higher-rates-for-additional-dwellings-minor-amendments

The three month limit gets extended to 12 months.

Perhaps assisted by lobbying from the Geek?

simonineaston

...three month limit gets extended to 12 months.

I must stay, when the penny dropped, with a lurch, & I realised that was a time limit to claiming a rebate, I was a bit miffed. OK, I know HMRC are dedicated to collecting tax and that they may take the view that time limitiing claims gives them access to modest amounts of tax if the innocent don't get around to applying in time, but I do rather think it's a cheek. It's almost as if they're saying, Yes you are entitled to that 3% back, but we're going to limit your chances of success...!
I guess I was lucky! :-)

simonineaston

I've had several requests to expand on what I told the tax office in my covering letter. I can only reiterate that I simply summarised my own situation. Clearly, everyone is different...

SDLT_Geek

There is another thread here https://forums.moneysavingexpert.com/discussion/5905040dealing with the same problem of the short time limit to put in the application where it has been reported that someone has managed to recover the extra 3% paid using overpayment relief referred to in HMRC's manual here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm54000