Stamp duty refund on first time buy property bought as buy to let?

rowzx

Hi everyone, 

I have recently bought my first property (1 bed flat) for c. £70k. I am a first time buyer. 

The property came with an existing tenant who is renting out the property. The day after I bought the property - and paid stamp duty on it - I was told that the tenant has just handed in their notice to the management company. After they leave, I intend to start living on my own in the property and will not be renting it out. 

Does this entitle me for a refund on the stamp duty I had to pay because the property was officially bought as buy-to-let? 

Thanks so much to anyone who can help answer this question. And a big extra-special thanks if you provide me with an answer which includes the word 'yes'

Rowzx

user1977

Don't think so, you need to have the intention to occupy it as your main residence at the time you bought. I can't see anything which helps you if you choose to move in later.

SDLT_Geek

rowzx said:

Hi everyone, 

I have recently bought my first property (1 bed flat) for c. £70k. I am a first time buyer. 

The property came with an existing tenant who is renting out the property. The day after I bought the property - and paid stamp duty on it - I was told that the tenant has just handed in their notice to the management company. After they leave, I intend to start living on my own in the property and will not be renting it out. 

Does this entitle me for a refund on the stamp duty I had to pay because the property was officially bought as buy-to-let? 

Thanks so much to anyone who can help answer this question. And a big extra-special thanks if you provide me with an answer which includes the word 'yes'

Rowzx

Did you buy in England?  If so the relevant stamp duty is stamp duty land tax.

No SDLT would have been due if neither you (nor any spouse / civil partner) had any interest in any other property.

As your only property, the extra 3% would not have applied, even if it was a property to rent out.

_Penny_Dreadful

rowzx said:

Hi everyone, 

I have recently bought my first property (1 bed flat) for c. £70k. I am a first time buyer. 

The property came with an existing tenant who is renting out the property. The day after I bought the property - and paid stamp duty on it - I was told that the tenant has just handed in their notice to the management company. After they leave, I intend to start living on my own in the property and will not be renting it out. 

Does this entitle me for a refund on the stamp duty I had to pay because the property was officially bought as buy-to-let? 

Thanks so much to anyone who can help answer this question. And a big extra-special thanks if you provide me with an answer which includes the word 'yes'

Rowzx

How much stamp duty did you pay? 

To qualify for the SDLT (England and Northern Ireland) FTB relief you need to intend for the property to be your main residence when you purchase it even if you don’t intend to take up residence immediately. You bought a BTL and if it were not for the tenant moving out would not have intended to live there therefore the FTB relief would not apply. 

A £70,000 property is below the threshold for paying any SDLT, LTT (Wales) or LBTT (Scotland). Therefore if you were subject to any SDLT/LTT/LBTT that would suggest that whilst you say you’ve just bought your first property you must own another, or at least a share of another property, valued at £40,000 or more. If you do own other property then you won’t be entitled to a refund just because the use of your additional property is changing.