Stamp duty refund conundrum

justiceforall2

Hi,

I lived in House A in London. I then moved with my partner and baby to rent House B in Herts. Shortly afterwards we had the opportunity to purchase House B. This purchase completed in June 2022. As I didn’t sell House A I had to pay the dastardly 3% additional surcharge.

It is now Jan 2025, so if I completed the sale of House A before May 2025, I could expect to recoup the 3%.

Thing is, I no longer reside in House B as we moved out last year.

When I go to reclaim the 3%, does it matter that I don’t reside at House B, even though I still own it?

SDLT_Geek

justiceforall2 said:

Hi,

I lived in House A in London. I then moved with my partner and baby to rent House B in Herts. Shortly afterwards we had the opportunity to purchase House B. This purchase completed in June 2022. As I didn’t sell House A I had to pay the dastardly 3% additional surcharge.

It is now Jan 2025, so if I completed the sale of House A before May 2025, I could expect to recoup the 3%.

Thing is, I no longer reside in House B as we moved out last year.

When I go to reclaim the 3%, does it matter that I don’t reside at House B, even though I still own it?

The four conditions for you to meet to qualify for a recovery of the extra 3% SDLT are set out in the guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800  Key ones for you to meet will be that:

You lived in House A as your only or main residence at some point within the three years leading up to the purchase of House B completing in June 2022.

At the point you completed the purchase of House B you intended to live in it as your only or main residence.  The fact that you have since moved out of House B is not fatal, but you need to consider the background and intentions as at June 2022.

justiceforall2

Thanks for the response. I did live in House A until 9 months before the purchase of House B.
At the time of the purchase of House B I did intend to live there indefinitely. Nearly 2 years later I go a career opportunity abroad and we decided to move and let out House B

SDLT_Geek

justiceforall2 said:

Thanks for the response. I did live in House A until 9 months before the purchase of House B.
At the time of the purchase of House B I did intend to live there indefinitely. Nearly 2 years later I go a career opportunity abroad and we decided to move and let out House B

It seems to me that you meet the conditions to get the 3% SDLT back if you complete the sale of House A in time.  

If you chose conveyancers who understand SDLT to act for you in the sale of House A, they should be able to confirm for you.