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Reclaiming stamp duty on second home
Katisha
Posts: 1 Newbie
If you buy a second home, you pay a 5% stamp duty surcharge. Very clear about that. But the gov.uk website states that if you sell your previous main residence
within 3 years, "you may be eligible" to get this surcharge refunded. Does anyone know why they say "MAY be eligible"? ie What factors might affect this, either way? Would be very grateful for any help!
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Comments
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Because the relief is for changing your main residence, not buying a "second home" i.e. you need to move into the place you buy, and the place you sell needs to have been your main residence.
Why are you asking?0 -
it is designed for people who buy their next house before selling the current one, if you do this then they send you the money back (plus I seem to remember a bit of interest) within a few weeks of claiming0
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If you replace your main residence , not just sell it.Katisha said:If you buy a second home, you pay a 5% stamp duty surcharge. Very clear about that. But the gov.uk website states that if you sell your previous main residence within 3 years, "you may be eligible" to get this surcharge refunded. Does anyone know why they say "MAY be eligible"? ie What factors might affect this, either way? Would be very grateful for any help!
Of you live in A then buy B and move into B as your main residence then you can apply for the refund when you sell A within the time limit.
If you buy B , then sell A and buy/ move into C as your main residence, you are not eligible for a refund.0 -
To see if there is an entitlement to a refund, one needs to work through the set of four conditions set out in the lower part of the HMRC guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800Katisha said:If you buy a second home, you pay a 5% stamp duty surcharge. Very clear about that. But the gov.uk website states that if you sell your previous main residence within 3 years, "you may be eligible" to get this surcharge refunded. Does anyone know why they say "MAY be eligible"? ie What factors might affect this, either way? Would be very grateful for any help!1
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