Stamp Duty/LLT Refund

brooklyn07

Hi all

I purchased a property this year, I am married but purchased it in my sole name because my husband has credit issues and they would lend me more on my own than they would jointly.  We hadn't sold our main residence when the new place came onto the market and the sellers requested a chain free sale so I had to go ahead and purchase it before we sold our other one.

The house my husband and I were already living in was in his own name as he lived there before we met, I never went onto the deeds/mortgage.

When i purchased the new property I was told that as my husband already owns a property then I would have to pay the higher rate of Land Tax (we are in wales) but wouldn't be an issue as it could be claimed back once it had sold,

Our main residence has now sold and we have moved into the property I purchased so I applied for a refund.

I have been told that because the sale of the main residence was not in my name then they can't refund me as my name was not on the sale document/deeds!

So if that's the case why have i needed to pay the extra stamp duty if as far as they are concerned theres no evidence that I had to do that?

Does any one have any advice on how I can claim it back now as essentially I have paid way more tax than I needed to but still not allowed to have it back.

loubel

What they've said doesn't seem right. I would ask them to clarify as your situation should be covered. But could the issue be that you didn't move into your new main residence straight away?

SDLT_Geek

brooklyn07 said:

Hi all

I purchased a property this year, I am married but purchased it in my sole name because my husband has credit issues and they would lend me more on my own than they would jointly.  We hadn't sold our main residence when the new place came onto the market and the sellers requested a chain free sale so I had to go ahead and purchase it before we sold our other one.

The house my husband and I were already living in was in his own name as he lived there before we met, I never went onto the deeds/mortgage.

When i purchased the new property I was told that as my husband already owns a property then I would have to pay the higher rate of Land Tax (we are in wales) but wouldn't be an issue as it could be claimed back once it had sold,

Our main residence has now sold and we have moved into the property I purchased so I applied for a refund.

I have been told that because the sale of the main residence was not in my name then they can't refund me as my name was not on the sale document/deeds!

So if that's the case why have i needed to pay the extra stamp duty if as far as they are concerned theres no evidence that I had to do that?

Does any one have any advice on how I can claim it back now as essentially I have paid way more tax than I needed to but still not allowed to have it back.

Who told you that?  They seem to wrong, given that you are married.  Here is an extract from the legislation, the Land Transaction Tax ..... Act 2017 Schedule 5 paragraph 8(2)(b):

(b) in another land transaction (“the previous transaction”), the effective date of which was during the period of 3 years ending with the effective date of the transaction concerned, the buyer or the buyer's spouse or civil partner at the time disposed of a major interest in another dwelling (“the sold dwelling”)

This allows for the "sold dwelling" to have been owned by a spouse.

Hoenir

What's the time gap between completing the acquisition and moving in to the new property. 

brooklyn07

SDLT_Geek said:

brooklyn07 said:

Hi all

I purchased a property this year, I am married but purchased it in my sole name because my husband has credit issues and they would lend me more on my own than they would jointly.  We hadn't sold our main residence when the new place came onto the market and the sellers requested a chain free sale so I had to go ahead and purchase it before we sold our other one.

The house my husband and I were already living in was in his own name as he lived there before we met, I never went onto the deeds/mortgage.

When i purchased the new property I was told that as my husband already owns a property then I would have to pay the higher rate of Land Tax (we are in wales) but wouldn't be an issue as it could be claimed back once it had sold,

Our main residence has now sold and we have moved into the property I purchased so I applied for a refund.

I have been told that because the sale of the main residence was not in my name then they can't refund me as my name was not on the sale document/deeds!

So if that's the case why have i needed to pay the extra stamp duty if as far as they are concerned theres no evidence that I had to do that?

Does any one have any advice on how I can claim it back now as essentially I have paid way more tax than I needed to but still not allowed to have it back.

Who told you that?  They seem to wrong, given that you are married.  Here is an extract from the legislation, the Land Transaction Tax ..... Act 2017 Schedule 5 paragraph 8(2)(b):

(b) in another land transaction (“the previous transaction”), the effective date of which was during the period of 3 years ending with the effective date of the transaction concerned, the buyer or the buyer's spouse or civil partner at the time disposed of a major interest in another dwelling (“the sold dwelling”)

This allows for the "sold dwelling" to have been owned by a spouse.

They are now saying that the tax shouldn't have been paid in my sole name becuase im married?! but the property was purchased in my sole name so why on earth would they go chasing my husband for half of it when its only in my name?

brooklyn07

Hoenir said:

What's the time gap between completing the acquisition and moving in to the new property. 

three months

user1977

brooklyn07 said:

SDLT_Geek said:

brooklyn07 said:

Hi all

I purchased a property this year, I am married but purchased it in my sole name because my husband has credit issues and they would lend me more on my own than they would jointly.  We hadn't sold our main residence when the new place came onto the market and the sellers requested a chain free sale so I had to go ahead and purchase it before we sold our other one.

The house my husband and I were already living in was in his own name as he lived there before we met, I never went onto the deeds/mortgage.

When i purchased the new property I was told that as my husband already owns a property then I would have to pay the higher rate of Land Tax (we are in wales) but wouldn't be an issue as it could be claimed back once it had sold,

Our main residence has now sold and we have moved into the property I purchased so I applied for a refund.

I have been told that because the sale of the main residence was not in my name then they can't refund me as my name was not on the sale document/deeds!

So if that's the case why have i needed to pay the extra stamp duty if as far as they are concerned theres no evidence that I had to do that?

Does any one have any advice on how I can claim it back now as essentially I have paid way more tax than I needed to but still not allowed to have it back.

Who told you that?  They seem to wrong, given that you are married.  Here is an extract from the legislation, the Land Transaction Tax ..... Act 2017 Schedule 5 paragraph 8(2)(b):

(b) in another land transaction (“the previous transaction”), the effective date of which was during the period of 3 years ending with the effective date of the transaction concerned, the buyer or the buyer's spouse or civil partner at the time disposed of a major interest in another dwelling (“the sold dwelling”)

This allows for the "sold dwelling" to have been owned by a spouse.

They are now saying that the tax shouldn't have been paid in my sole name becuase im married?! but the property was purchased in my sole name so why on earth would they go chasing my husband for half of it when its only in my name?

"I have been told",  "they are now saying" - who are "they", the Welsh Revenue Authority? Are you discussing this with them in writing?

If your purchase was less than 12 months ago you should be doing this by amending your return, is that what you're doing?

https://www.gov.wales/claim-land-transaction-tax-refund

SDLT_Geek

brooklyn07 said:

SDLT_Geek said:

brooklyn07 said:

Hi all

I purchased a property this year, I am married but purchased it in my sole name because my husband has credit issues and they would lend me more on my own than they would jointly.  We hadn't sold our main residence when the new place came onto the market and the sellers requested a chain free sale so I had to go ahead and purchase it before we sold our other one.

The house my husband and I were already living in was in his own name as he lived there before we met, I never went onto the deeds/mortgage.

When i purchased the new property I was told that as my husband already owns a property then I would have to pay the higher rate of Land Tax (we are in wales) but wouldn't be an issue as it could be claimed back once it had sold,

Our main residence has now sold and we have moved into the property I purchased so I applied for a refund.

I have been told that because the sale of the main residence was not in my name then they can't refund me as my name was not on the sale document/deeds!

So if that's the case why have i needed to pay the extra stamp duty if as far as they are concerned theres no evidence that I had to do that?

Does any one have any advice on how I can claim it back now as essentially I have paid way more tax than I needed to but still not allowed to have it back.

Who told you that?  They seem to wrong, given that you are married.  Here is an extract from the legislation, the Land Transaction Tax ..... Act 2017 Schedule 5 paragraph 8(2)(b):

(b) in another land transaction (“the previous transaction”), the effective date of which was during the period of 3 years ending with the effective date of the transaction concerned, the buyer or the buyer's spouse or civil partner at the time disposed of a major interest in another dwelling (“the sold dwelling”)

This allows for the "sold dwelling" to have been owned by a spouse.

They are now saying that the tax shouldn't have been paid in my sole name becuase im married?! but the property was purchased in my sole name so why on earth would they go chasing my husband for half of it when its only in my name?

As sole purchaser, the LTT is your sole liability and the land transaction return should be made in your sole name and the application for a refund should be by you alone.

All that is true, while at the same time it is also true that whether or not the higher rates of LTT apply, or continue to apply, have to be judged as if a spouse was also a purchaser.  But that does not make your husband also a purchaser.