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SDLT Refund

Hi folks, first post so bear with me.

In 2016 I purchased a second home which replaced my main residence. I was required to pay the 2nd home SDLT in respect of this purchase.

Initial property was let out for a period of 6 months then put onto the market to sell. Sale agreed relatively quickly but never completed due to conveyancing issues (it is an apartment and there were/is issues with management company) I pulled out of the sale as it was not going to complete.

I had no choice but to sell the second property and move myself and children back to apartment. House completed and sold 27 months after initial purchase.

I assumed wrongly that I would be entitled to SDLT refund as I had sold one of the properties. HMRC have rejected my application as I did not sell the previous main residence (the apartment) despite my best efforts.

Does anyone know if it is worth appealing this decision? I’m no better off than I was and if I am to buy again in near future which is likely, I’m going to be penalised again for stamp duty.

Comments

  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Appeal it on what basis? That you thought the tax rules were different from what they actually are?
  • On the basis that the circumstances are no different had I been able to sell the first property. Within 36 months the second property was sold.
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Ems_4499 wrote: »
    On the basis that the circumstances are no different had I been able to sell the first property. Within 36 months the second property was sold.
    You can't rewrite the law on a whim just to benefit your own personal circumstances. HMRC are correct.
  • laptop80
    laptop80 Posts: 203 Forumite
    Tenth Anniversary Combo Breaker
    The only thing you'll get from HMRC on this is an hour of your life lost trying to get through on the phone.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Ems_4499 wrote: »
    In 2016 I purchased a second home which replaced my main residence. I was required to pay the 2nd home SDLT in respect of this purchase.
    Prior to 2016, you owned one property - A - your main residence.
    In 2016, you bought a second, B - which became your main residence, but you didn't sell A at that time.
    I had no choice but to sell the second property and move myself and children back to apartment. House completed and sold 27 months after initial purchase.
    You sold B and moved back into A.
    I assumed wrongly that I would be entitled to SDLT refund as I had sold one of the properties. HMRC have rejected my application as I did not sell the previous main residence (the apartment) despite my best efforts.
    That's correct.

    The 3% refund would have come if you'd sold A, because you were selling your previous main residence.
    Does anyone know if it is worth appealing this decision?
    No, because they're right.
    and if I am to buy again in near future which is likely, I’m going to be penalised again for stamp duty.
    Only if you don't sell A when you buy this new place, C.

    The question is why didn't A sell? There's one usual reason...
  • A didn’t sell because of issues with leasehold. And it isn’t likely to be resolved anytime soon.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Ems_4499 wrote: »
    A didn’t sell because of issues with leasehold. And it isn’t likely to be resolved anytime soon.
    What sort of issues? Simply length, or something else?

    A short-lease property will sell, albeit at a reduced price. Just bung it in an auction.
  • It’s a long story. The management company was dissolved in 2010 without the residents knowledge. Solicitor has advised me there’s no short term solution as they will need to set up another company and all deeds for each apartment will need to be rewritten to incorporate the new company. Obviously I wasn’t aware of this otherwise I wouldn’t have A. Bought the new property B. Put the apartment on the market which caused 6 months of heartache for myself and the person who was buying 😩
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Who's the freeholder?
  • It’s another company which is still trading and named on lease.
This discussion has been closed.
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