Higher Rate Stamp Duty Time Limit

MarkymarkUK

Speaking with HMRC has been like speaking with remedials….

i have a single BTL which is rented out. I sold my main residence last year and still looking to buy another main residence.

Have lived with family since selling. 

As I am replacing my main residence then only regular rate stamp duty will be due. 

I have heard that there is a three year time period from which I must complete on the new purchase, otherwise the higher level of stamp duty will be due.

Can anyone confirm this and provide a link to the source of info?

 

_Penny_Dreadful

MarkymarkUK said:

Speaking with HMRC has been like speaking with remedials….

i have a single BTL which is rented out. I sold my main residence last year and still looking to buy another main residence.

Have lived with family since selling. 

As I am replacing my main residence then only regular rate stamp duty will be due. 

I have heard that there is a three year time period from which I must complete on the new purchase, otherwise the higher level of stamp duty will be due.

Can anyone confirm this and provide a link to the source of info?

 

That is correct.  You have 3 years from disposing of your main residence to purchase a new main residence or you will face the higher rate of SDLT due to the BTL.

The purchaser must have lived in the old property as the purchaser's only or main residence at some point in the three-year period preceding the date of the purchase of the new property  [Para 3(6) (c)]. This is the three-year occupation rule.

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

SDLT_Geek

_Penny_Dreadful said:

MarkymarkUK said:

Speaking with HMRC has been like speaking with remedials….

i have a single BTL which is rented out. I sold my main residence last year and still looking to buy another main residence.

Have lived with family since selling. 

As I am replacing my main residence then only regular rate stamp duty will be due. 

I have heard that there is a three year time period from which I must complete on the new purchase, otherwise the higher level of stamp duty will be due.

Can anyone confirm this and provide a link to the source of info?

 

That is correct.  You have 3 years from disposing of your main residence to purchase a new main residence or you will face the higher rate of SDLT due to the BTL.

The purchaser must have lived in the old property as the purchaser's only or main residence at some point in the three-year period preceding the date of the purchase of the new property  [Para 3(6) (c)]. This is the three-year occupation rule.

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

What a great answer!

_Penny_Dreadful

SDLT_Geek said:

_Penny_Dreadful said:

MarkymarkUK said:

Speaking with HMRC has been like speaking with remedials….

i have a single BTL which is rented out. I sold my main residence last year and still looking to buy another main residence.

Have lived with family since selling. 

As I am replacing my main residence then only regular rate stamp duty will be due. 

I have heard that there is a three year time period from which I must complete on the new purchase, otherwise the higher level of stamp duty will be due.

Can anyone confirm this and provide a link to the source of info?

 

That is correct.  You have 3 years from disposing of your main residence to purchase a new main residence or you will face the higher rate of SDLT due to the BTL.

The purchaser must have lived in the old property as the purchaser's only or main residence at some point in the three-year period preceding the date of the purchase of the new property  [Para 3(6) (c)]. This is the three-year occupation rule.

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

What a great answer!

Why thank you 

MarkymarkUK

@penny_dreadful

Many thanks for your answer. 
I wish everything was this straight forward. 😃

I literally lost my cool when speaking with HMRC as impossible get anything out of the person I spoke to that makes sense, just no commital…. 



Any ideas with this one….

Bought a flat in 2011 to live in, then bought another property (a house mentioned above) in 2016 to move into. I then let out the flat and moved into the house, paying the higher level of stamp. 

Person at HMRC was saying that higher level may be due on my new purchase still as I never disposed of my original previous residence which is let out. 

Sounds like nonsense to me which is why I didnt mention it in first post, can you confirm?

RAS

Sure @SDLT_Geek will be happy to confirm your analysis.

For what it's worth, there are repeated threads on here whose OP is struggling with lawyers convinced they have to pay the higher rate SDLT.

user1977

It sounds like you're still replacing your main residence, it doesn't matter how many other properties you own as long as you're selling your main residence and buying a new main residence (and doing so within the 3 year window).

Hoenir

MarkymarkUK said:

I literally lost my cool when speaking with HMRC as impossible get anything out of the person I spoke to that makes sense, just no commital…. 

HMRC are not their to provide a free advice service. 

SDLT_Geek

MarkymarkUK said:

@penny_dreadful

Many thanks for your answer. 
I wish everything was this straight forward. 😃

I literally lost my cool when speaking with HMRC as impossible get anything out of the person I spoke to that makes sense, just no commital…. 



Any ideas with this one….

Bought a flat in 2011 to live in, then bought another property (a house mentioned above) in 2016 to move into. I then let out the flat and moved into the house, paying the higher level of stamp. 

Person at HMRC was saying that higher level may be due on my new purchase still as I never disposed of my original previous residence which is let out. 

Sounds like nonsense to me which is why I didnt mention it in first post, can you confirm?

It is not a problem that you have not disposed of the flat. You can rely on your sale last year of your house which had been your only residence.  That should mean that meet all of the conditions for the replacement exception.

MarkymarkUK

Hoeing said:

MarkymarkUK said:

I literally lost my cool when speaking with HMRC as impossible get anything out of the person I spoke to that makes sense, just no commital…. 

HMRC are not there to provide a free advice service. 

Actually you are wrong there. As per their own website:

“Why we offer advice

HMRC offers advice and information including guidance, to help you with your:

• obligations
• liabilities
• entitlements

It is your choice if you act on this advice and information or not.”

😀

It’s a shame the person I spoke didn’t fact check before wrongly saying “that when disposing of main home, there is no time limit in purchasing your new one, there is no 3 year window before the higher rate of stamp becomes applicable”.

MarkymarkUK

SDLT_Geek said:

MarkymarkUK said:

@penny_dreadful

Many thanks for your answer. 
I wish everything was this straight forward. 😃

I literally lost my cool when speaking with HMRC as impossible get anything out of the person I spoke to that makes sense, just no commital…. 



Any ideas with this one….

Bought a flat in 2011 to live in, then bought another property (a house mentioned above) in 2016 to move into. I then let out the flat and moved into the house, paying the higher level of stamp. 

Person at HMRC was saying that higher level may be due on my new purchase still as I never disposed of my original previous residence which is let out. 

Sounds like nonsense to me which is why I didnt mention it in first post, can you confirm?

It is not a problem that you have not disposed of the flat. You can rely on your sale last year of your house which had been your only residence.  That should mean that meet all of the conditions for the replacement exception.

Thank you for the confirmation of this.