I'm Buying a Property Overseas Can I Claim Payment Back when I return to UK?

Mercurial

I'm working overseas at the moment and plan to move back to the UK early January 2022.  I'm in the process of buying a flat.  I have to pay the additional fee as I am working overseas.  Could I claim the payment back when I return?

TIA

user1977

Depends which "additional fee" you're talking about - can you explain further?

Mercurial

It's the SDLT surcharge for overseas buyers.

Mercurial

I guess I should have specified property is in England.

K_S

@mercurial If it's the 2% overseas buyer surcharge you are referring to, it looks like you may be able to claim a refund based on a cursory look at the guidance here https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents#when-and-how-refund

AdrianC

Ah, I see the confusion. Thread title - "I'm buying a property overseas..." - I wasn't alone in thinking you were buying a property that is in a different country.

Yes, if you become UK resident again within 18 months following completion of the purchase (you need to spend 6 months here out of 12 within 24), you can claim a refund.

https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents#when-and-how-refund

Mercurial

Thank you everyone for the information it's a great help.  Sorry my title was misleading.  Good to know I can claim back.

GDB2222

AdrianC said:

Ah, I see the confusion. Thread title - "I'm buying a property overseas..." - I wasn't alone in thinking you were buying a property that is in a different country.

Yes, if you become UK resident again within 18 months following completion of the purchase (you need to spend 6 months here out of 12 within 24), you can claim a refund.

https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents#when-and-how-refund

Are you relying on the passage that KS quoted? If so, where do you get the 18 months from? It talks about a 2 year period beginning a year before the purchase and ending a year after it.

Mercurial

GDB2222 I have two years after the transaction to make the claim.  Will check with my solicitor to confirm.

The refund is claimed by amending the SDLT return to take account of the fact that the transaction is ultimately not liable to the surcharge. This can be done within 2 years after the effective date of the transaction once the residence rule is satisfied.

Example

In the previous example, Fifi purchased a freehold residential property in England on 26 October 2022 and paid the non-UK resident SDLT surcharge on the transaction.

In the 12 months prior to the transaction, Fifi spent 77 days in the UK. This was all during the period 1 July to 26 October 2022. She was therefore non-UK resident in relation to the transaction and paid the surcharge on her purchase.

However, between 27 October 2022 and 30 June 2023, Fifi spent a further 106 days in the UK. She is therefore entitled to a refund of the 2% surcharge.

Fifi has until 26 October 2024 to amend the SDLT return to notify HMRC that the transaction is not liable to the surcharge and apply for a refund of the 2% surcharge paid.

AdrianC

GDB2222 said:

AdrianC said:

Ah, I see the confusion. Thread title - "I'm buying a property overseas..." - I wasn't alone in thinking you were buying a property that is in a different country.

Yes, if you become UK resident again within 18 months following completion of the purchase (you need to spend 6 months here out of 12 within 24), you can claim a refund.

https://www.gov.uk/guidance/rates-of-stamp-duty-land-tax-for-non-uk-residents#when-and-how-refund

Are you relying on the passage that KS quoted? If so, where do you get the 18 months from? It talks about a 2 year period beginning a year before the purchase and ending a year after it.

You're right. I read the 2yrs as being completely after the purchase, but less 6mo means you have to be resident within 18mo.

My bad. More tea required.

martindow

AdrianC said:

 More tea required.

Always good advice!