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SDLT Refund
Ems_4499
Posts: 5 Forumite
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.
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.
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Comments
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Appeal it on what basis? That you thought the tax rules were different from what they actually are?0
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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.0
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The only thing you'll get from HMRC on this is an hour of your life lost trying to get through on the phone.0
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Prior to 2016, you owned one property - A - your main residence.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.
In 2016, you bought a second, B - which became your main residence, but you didn't sell A at that time.
You sold B and moved back into A.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.
That's correct.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.
The 3% refund would have come if you'd sold A, because you were selling your previous main residence.
No, because they're right.Does anyone know if it is worth appealing this decision?
Only if you don't sell A when you buy this new place, C.and if I am to buy again in near future which is likely, I’m going to be penalised again for stamp duty.
The question is why didn't A sell? There's one usual reason...0 -
A didn’t sell because of issues with leasehold. And it isn’t likely to be resolved anytime soon.0
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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 😩0
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Who's the freeholder?0
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It’s another company which is still trading and named on lease.0
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