Stamp Duty Refund Question

longtimelurker2020

I’ve read some .gov SDLT pages but am none the wiser, hope the clever folk here can help:

Property 1: main residence for many years, converted to BTL

Property 2: now main residence 

My initial understanding was that a refund of the 3% additional dwelling charge would be due if Property 1 was sold within three years. 

However, from what I’ve read, it appears that a refund might not be due because Property 1 was converted to a BTL, and that a refund would only be possible if we sold Property 2 because it’s the main residence. Is this correct? 

There’s no plan to sell Property 2 as its now the main residence. It’s Property 1 that’s on the cards for a sale, so does this mean we get no refund or relief whatsoever if it was sold within 36 months? Thanks 

Snookie12cat

longtimelurker2020 said:

I’ve read some .gov SDLT pages but am none the wiser, hope the clever folk here can help:

Property 1: main residence for many years, converted to BTL

Property 2: now main residence 

My initial understanding was that a refund of the 3% additional dwelling charge would be due if Property 1 was sold within three years. 

However, from what I’ve read, it appears that a refund might not be due because Property 1 was converted to a BTL, and that a refund would only be possible if we sold Property 2 because it’s the main residence. Is this correct? 

There’s no plan to sell Property 2 as its now the main residence. It’s Property 1 that’s on the cards for a sale, so does this mean we get no refund or relief whatsoever if it was sold within 36 months? Thanks 

I believe you have to have lived in it as your main residence previously and then sold within 3 years and this is acceptable for the refund. 

So you live in it 2000-2018, convert to BTL 2018-2020 then sell, the refund would still be due and having it as a BTL would not change this as it was your main residence.

Slithery

Whether or not it's now a BTL is irrelevant. It only matters that it was your main residence within 3 years before it's sold.

SDLT_Geek

Selling Property 2 would never entitle you to a refund of the extra 3% SDLT paid on Property 2. 
Completing the sale of Property 1 within three years of completing the purchase of Property 2 is likely to entitle you to a refund of the extra 3%. 
It is a matter of meeting the four relevant conditions set out in the guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

longtimelurker2020

Thank you for replying guys, it’s all clear now.