Second Home SDLT

MrBignose

Hi All, Sounding out before paying for legal advice but as a general question; When I bought my current main property I paid 2nd home SDLT as the previous house sale was delayed. Unfortunately or stupidly I thought I had three years to claim back when in fact the deadline is a year and I missed it. A very expensive mistake. I'm now looking at another property to move into and renovate, and as I have already paid 2nd home SDLT on the first house, can I purchase the additional property and state it as my main residence and not be liable for even more SDLT? I don't want to do anything to avoid what is rightfully due but it has a bearing on weather I proceed with an offer or not. Any advice appreciated.

sheramber

You owned house A which you lived in it as your main residence

You bought house B , paid additional SDLT  and moved in as  your main residence? 

You sold house A  but too late claim for refund of SDLT . 

Now looking  to buy house C. 

You still own  house B , your main residence

Will you be selling house B?

If not you will pay additional SDLT as you are not replacing your main residence by disposing of it. 

If you  dispose of house B  at the time of buying house C - no additional SDLT

If you dispose of house B within 3 years then , as before, you can claim a refund of the additional SDLT. 

p00hsticks

MrBignose said:

Unfortunately or stupidly I thought I had three years to claim back when in fact the deadline is a year and I missed it. A very expensive mistake. 

The deadline is now three years, although it was shorter in the past (for properties sold before 28th October 2018)
Higher rates of Stamp Duty Land Tax - GOV.UK

sheramber

p00hsticks said:

MrBignose said:

Unfortunately or stupidly I thought I had three years to claim back when in fact the deadline is a year and I missed it. A very expensive mistake. 

The deadline is now three years, although it was shorter in the past (for properties sold before 28th October 2018)
Higher rates of Stamp Duty Land Tax - GOV.UK

3 years to sell but 12 months from then to claim refund. 

MrBignose

Thanks all, yes hmrc turned down claim July this year so 3 years is misleading.
thanks Sheramber, makes sense even if possibly unfair. Doesn’t encourage investment but I guess ‘dems da rules” 👍

SDLT_Geek

MrBignose said:

Thanks all, yes hmrc turned down claim July this year so 3 years is misleading.
thanks Sheramber, makes sense even if possibly unfair. Doesn’t encourage investment but I guess ‘dems da rules” 👍

When the time limit for claiming a refund could be as short as 3 months from the date of the sale, HMRC used to be relatively sympathetic to claims for “overpayment relief” outside of that period, especially for vulnerable taxpayers who were not aware of the time limits.

That might just be worth a shot if there are mitigating factors as to why the refund application was not made.