Stamp Duty Refund question

1234

Hello all, would appreciate the advice.

Partner and i found the perfect home during covid lockdown but was having trouble getting my old place onto the market. We had enough funds to purchase without relying on on sale of current property.

We completed in March 2021.

Previous main residence was 100% owned by myself with my partner living with me
New main residence is jointly owned with both our names on the mortgage.

My partner also has a joint mortgage on a property with her sister but hasn't lived there since 2010 and receive no financial benefit from it.

I have now completed the sale on my property and want to apply for 3% surcharge for an additional property but because she still owns another property albeit not her main residence for over 10 years will this make us in-eligible for the refund.

I've had a look on HMRC and unsure if we meet the 4 rules due to her second property.

Thanks.

housebuyer143

That's correct, if she has an interest in another property and is still going to be on the deeds I don't think you will qualify for the refund of stamp duty.

SDLT_Geek

1234 said:

Hello all, would appreciate the advice.

Partner and i found the perfect home during covid lockdown but was having trouble getting my old place onto the market. We had enough funds to purchase without relying on on sale of current property.

We completed in March 2021.

Previous main residence was 100% owned by myself with my partner living with me
New main residence is jointly owned with both our names on the mortgage.

My partner also has a joint mortgage on a property with her sister but hasn't lived there since 2010 and receive no financial benefit from it.

I have now completed the sale on my property and want to apply for 3% surcharge for an additional property but because she still owns another property albeit not her main residence for over 10 years will this make us in-eligible for the refund.

I've had a look on HMRC and unsure if we meet the 4 rules due to her second property.

Thanks.

On the face of it you would not qualify for a refund.  But some things could save you:

1.  If you are married / civil partners with your partner.

2.  If the share your partner has in the other property is worth under £40,000 (that is, without taking off the amount of any loan).

1234

Yes we are married, I think her value is more than £40,000. 

SDLT_Geek

1234 said:

Yes we are married, I think her value is more than £40,000. 

It might well change things that you are married.  

Were you married when you jointly bought the property in March 2021?

How long had she lived in your old home before you sold it?

1234

Thanks for getting back to me.

She has lived with me since 2014 and yes we were married when purchasing property in 2021.

SDLT_Geek

1234 said:

Thanks for getting back to me.

She has lived with me since 2014 and yes we were married when purchasing property in 2021.

This changes everything.  It seems likely that your spouse can rely on your disposal of what was her main residence. 

You can check the details in the HMRC guidance for the replacement of a main residence here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800 

1234

Thanks for confirming.

1234

Hi @SDLT_Geek just wanted to update you.  I applied and successfully got the refund, HMRC did the calculations and It worked out about £500 more than I was trying to claim for.

SDLT_Geek

1234 said:

Hi @SDLT_Geek just wanted to update you.  I applied and successfully got the refund, HMRC did the calculations and It worked out about £500 more than I was trying to claim for.

Thank you for the update, that is good to hear.