SDLT Refund on 2nd Property. Definition of 'Main Buyer'

BKD1972

Hello, I hope somebody can help me please.

I own a property that me and my wife live in after we recently married. We are purchasing a 2nd property to live in but keeping the current one until after completion on the 2nd. We will then sell this one.

I know we can claim the SDLT back provided we sell the previous main residence within three years.

However , I'm not fully understanding this clause and google is not throwing up any answers.

"You can apply for a refund of the higher rates of SDLT for additional properties if you’ve sold what was previously your main home. You have to be either the: 

main buyer of the property charged at the higher rate of SDLT"

We are buying it in joint names so are we bothy classed as main buyers and therefore able to claim the refund? 

What is the definition of 'main buyer' please?

_Penny_Dreadful

BKD1972 said:

Hello, I hope somebody can help me please.

I own a property that me and my wife live in after we recently married. We are purchasing a 2nd property to live in but keeping the current one until after completion on the 2nd. We will then sell this one.

I know we can claim the SDLT back provided we sell the previous main residence within three years.

However , I'm not fully understanding this clause and google is not throwing up any answers.

"You can apply for a refund of the higher rates of SDLT for additional properties if you’ve sold what was previously your main home. You have to be either the: 

main buyer of the property charged at the higher rate of SDLT"

We are buying it in joint names so are we bothy classed as main buyers and therefore able to claim the refund? 

What is the definition of 'main buyer' please?

“Main buyer,” isn’t a term used in either the legislation that governs the higher rate of SDLT or the accompanying HMRC manual. 

Providing you sell your current home within 3 years of completing the purchase of your new home you’ll meet the definition of replacing your main residence and will be able to reclaim the additional SDLT paid. You’ll have 12 months from the sale to claim the refund. 

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

SDLT_Geek

_Penny_Dreadful said:

BKD1972 said:

Hello, I hope somebody can help me please.

I own a property that me and my wife live in after we recently married. We are purchasing a 2nd property to live in but keeping the current one until after completion on the 2nd. We will then sell this one.

I know we can claim the SDLT back provided we sell the previous main residence within three years.

However , I'm not fully understanding this clause and google is not throwing up any answers.

"You can apply for a refund of the higher rates of SDLT for additional properties if you’ve sold what was previously your main home. You have to be either the: 

main buyer of the property charged at the higher rate of SDLT"

We are buying it in joint names so are we bothy classed as main buyers and therefore able to claim the refund? 

What is the definition of 'main buyer' please?

“Main buyer,” isn’t a term used in either the legislation that governs the higher rate of SDLT or the accompanying HMRC manual. 

Providing you sell your current home within 3 years of completing the purchase of your new home you’ll meet the definition of replacing your main residence and will be able to reclaim the additional SDLT paid. You’ll have 12 months from the sale to claim the refund. 

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

I recall that what HMRC mean by "main buyer" in this context is the first buyer named on the land transaction return.

user1977

_Penny_Dreadful said:

BKD1972 said:

Hello, I hope somebody can help me please.

I own a property that me and my wife live in after we recently married. We are purchasing a 2nd property to live in but keeping the current one until after completion on the 2nd. We will then sell this one.

I know we can claim the SDLT back provided we sell the previous main residence within three years.

However , I'm not fully understanding this clause and google is not throwing up any answers.

"You can apply for a refund of the higher rates of SDLT for additional properties if you’ve sold what was previously your main home. You have to be either the: 

main buyer of the property charged at the higher rate of SDLT"

We are buying it in joint names so are we bothy classed as main buyers and therefore able to claim the refund? 

What is the definition of 'main buyer' please?

“Main buyer,” isn’t a term used in either the legislation that governs the higher rate of SDLT or the accompanying HMRC manual. 

It is unhelpfully used in the guidance about claiming a refund: https://www.gov.uk/guidance/apply-for-a-refund-of-the-higher-rates-of-stamp-duty-land-tax

But I've no idea what they're getting at, and in the case of a couple who are buying and selling, neither of them is treated as any main-er than the other, so I wouldn't worry about it.

BKD1972

THankyou for your replies. Yes it was here that I found it, hence my concern.

https://www.gov.uk/guidance/apply-for-a-refund-of-the-higher-rates-of-stamp-duty-land-tax

We would both own 50%

BKD1972

I think I've interpreted it incorrectly

I think what it means is the person applying has to be the main buyer or an agent acting for the main  buyer

When to apply for a refund of Stamp Duty Land Tax (SDLT)

You can apply for a refund of the higher rates of SDLT for additional properties if you’ve sold what was previously your main home. You have to be either the: 

• main buyer of the property charged at the higher rate of SDLT 
• agent acting for the main buyer 

You must have sold your previous main home within 3 years of buying the new property, unless exceptional circumstances apply.

user1977

Indeed but I don't know what distinction they're drawing between a "buyer" and "main buyer"...

mills112

my husband owned a house on his own and he sold that and we bought a house together.  when his house was sold after the purchase of the new one, he was able to claim the stamp duty back no bother, so you will be fine as a couple.