Complex 'Higher Rate' SDLT question

davidmcn

7sefton said:

Hi again everyone - I’m now completely confused about my situation because after believing for a long time I would be able to reclaim the Higher SDLT (and having it confirmed in this group), my solicitor doesn’t think it would be possible.

Have they explained why not? If they think that letting it out for the past six months excludes you, they're wrong - all that is required is that it was your main residence within the three years before you bought the new property.

AnotherJoe

7sefton said:

Why not, when I have never had more than one 'main residence'?

cause thems the rules, thats why.

7sefton

The previous two comments highlight the problem: nobody seems to have a final answer haha. Is there any way I can get a definite answer because I won’t compete on the sale if I can’t get the SDLT back?

davidmcn

7sefton said:

The previous two comments highlight the problem: nobody seems to have a final answer haha. Is there any way I can get a definite answer because I won’t compete on the sale if I can’t get the SDLT back?

I don't think AnotherJoe is answering your latest query, just your original one. Like I said, ask your solicitor to explain their rationale (if they haven't already). Generally the advice you've been given here is correct. You've been given the link the HMRC handbook, which gives you the definite anwer if you work your way through it.

saajan_12

7sefton said:

The previous two comments highlight the problem: nobody seems to have a final answer haha. Is there any way I can get a definite answer because I won’t compete on the sale if I can’t get the SDLT back?

The answer is changing because you're changing the scenario. AnotherJoe's response was to your comment back when you were talking about reclaiming SDLT upon sale of the Leeds house (B) which is a No. davidmcn is responding to the new scenario of reclaiming STLT on B upon sale of the London house (A) which is a Yes. 

The only person disagreeing is your solicitor, so ask them to elaborate. 

7sefton

Ah ok, thank you everyone! Very appreciative 

AdrianC

7sefton said:

Hi again everyone - I’m now completely confused about my situation because after believing for a long time I would be able to reclaim the Higher SDLT (and having it confirmed in this group), my solicitor doesn’t think it would be possible.

To recap:

- I have owned a flat in London as my primary residence for years 

- I started letting this property out in December 2019, as I was moving to Leeds for work and didn’t have the time to sell it. It’s still being rented now.

- Meanwhile I intend to buy this new flat in Leeds and use it as my primary residence. I’m aware I will initially pay the Higher SDLT because I will still own the London flat. 

I genuinely thought I fell into the category of temporarily having two homes when the intention is always to have one. 

You own A - London - which has not been your residence for six months and counting, and is let.
You live in B - Leeds - which you do not own.
You are now buying C - Leeds.

You pay +3% on the purchase of C, no question about it. It's an additional property. You are going from owning 1 property to owning 2.

If you sell A within 3yrs of the purchase of C, then it comes into question whether the residence in B was short-enough lived to be temporary, leading to you claiming A was your previous residence - and reclaiming that +3%. That's where your "temporarily" comes in. But unless and until you sell A (which you haven't mentioned), that's purely academic.