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nkomp18
Posts: 193 Forumite
I have a question in regards to the new stamp duty laws.
In April 2016 the higher rate stamp duty was introduced. However, it was retrospective and was also being applied to properties bought prior to April 2016, I believe from end of November 2015 onwards.
Now the new budget was introduced in 29 October 2018 and I noticed that it also retrospective from 22nd of November 2017 onwards.
I exchanged on a property in August 2018, does that mean I can claim stamp duty back?
In April 2016 the higher rate stamp duty was introduced. However, it was retrospective and was also being applied to properties bought prior to April 2016, I believe from end of November 2015 onwards.
Now the new budget was introduced in 29 October 2018 and I noticed that it also retrospective from 22nd of November 2017 onwards.
I exchanged on a property in August 2018, does that mean I can claim stamp duty back?
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Comments
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In April 2016 the higher rate stamp duty was introduced. However, it was retrospective and was also being applied to properties bought prior to April 2016, I believe from end of November 2015 onwards.
I'm assuming you're based in England or Wales.
I'm pretty sure the 3% increase for second homes wasn't retrospective. It was announced in the November 2015 Autumn statement and took effect for properties completing on or after April 2016.
Reductions in SDLT for first time buyers announced in the 2017 Autumn Statement took effect immediately (or actually at the start of that week).
I'm not sure what 'new stamp duty laws' you are referring to - as far as I'm aware there weren't any changes to SDLT in the latest Autumn statement.
It's normal for changes announced in the budget to take effect immediately, as the Finance act that provides the legislation to back it up, although completed several months later, traditionally passes though the house unopposed.0 -
If you've merely exchanged and not completed then you haven't paid any stamp duty - and you'll be entitled to pay at the rates which applied at the time you exchanged.I exchanged on a property in August 2018, does that mean I can claim stamp duty back?
I think you're confused about it being retrospective - as above, it's only retrospective in the sense that by the time the legislation has gone through Parliament, it is deemed to apply from the Budget day it was announced (subject to transitional arrangements for those already in a contract).0 -
I exchanged in February 2016 and my lawyer said the new higher rate laws affect me because the April 2016 law was retrospective.
I completed in August 2018 and paid Stamp duty on the 31st of August.
The new reduced stamp duty law was announced in October 2018 but the government page says :
The relief will apply retrospectively from 22 November 2017, meaning that a refund of tax will be payable for those who have paid SDLT after the 22 November 2017 in circumstances which now qualify for First Time Buyers’ Relief.
So to me that sounds like I can claim all the stamp duty back. Right?0 -
I exchanged in February 2016 and my lawyer said the new higher rate laws affect me because the April 2016 law was retrospective.
I completed in August 2018 and paid Stamp duty on the 31st of August.
The new reduced stamp duty law was announced in October 2018 but the government page says :
The relief will apply retrospectively from 22 November 2017, meaning that a refund of tax will be payable for those who have paid SDLT after the 22 November 2017 in circumstances which now qualify for First Time Buyers’ Relief.
So to me that sounds like I can claim all the stamp duty back. Right?
[FONT=Verdana, sans-serif]The FTB relief backdated is if you were a FTB after 22 Nov 2017 but because you bought a shared ownership property and elected to pay stamp duty only on the share you were buying say 50%, rather than on the total market value, you were not allowed FTB relief.[/FONT]
[FONT=Verdana, sans-serif]Now you can claim back that stamp duty.[/FONT]0 -
I exchanged in February 2016 and my lawyer said the new higher rate laws affect me because the April 2016 law was retrospective.
I completed in August 2018 and paid Stamp duty on the 31st of August.
The new reduced stamp duty law was announced in October 2018 but the government page says :
The relief will apply retrospectively from 22 November 2017, meaning that a refund of tax will be payable for those who have paid SDLT after the 22 November 2017 in circumstances which now qualify for First Time Buyers’ Relief.
So to me that sounds like I can claim all the stamp duty back. Right?
I think you (or I) are getting confused here.
As per my previous post, the 'higher rate laws' introduced in the Autumn 2015 statement and legalised in April 2016 only applied to second homes / additional properties, and wasn't retrospective as (as far as I recall) it was based on completion dates, not exchange dates.
If you are now saying you are eligible for first time buyer relief then these higher rates wouldn't have been applicable to you whenever you exchanged/completed.
Was the property you bought the first and only property you own, what was it market value and how much stamp duty did you pay ?0 -
The higher rate laws back in April did affect me because at the time I owned a property and exchanged on a second one. It was because of the fact that the law was retrospective that I was forced to sell my other property, even though I exchanged 2 months before the law was introduced.
By the time of completion I had already sold my other property and this was my only property in the UK and I paid 16k stamp duty in August, which from what I understand wouldn't apply today0 -
The higher rate laws back in April did affect me because at the time I owned a property and exchanged on a second one. It was because of the fact that the law was retrospective that I was forced to sell my other property, even though I exchanged 2 months before the law was introduced.
By the time of completion I had already sold my other property and this was my only property in the UK and I paid 16k stamp duty in August, which from what I understand wouldn't apply today
How much did you pay for the property? Was it a shared ownership? If so what %age share did you buy?0 -
You owned house A which you sold before buying house B.
from the link below you are not a first time buyer
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/751718/Stamp_Duty_Land_Tax_relief_for_first_time_buyers_-_guidance_note.pdf
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Chapter
3: Definition of a first time buyer
In order to count as a first time buyer, a purchaser must not, either alone or with others,
have previously acquired a major interest in a dwelling or an equivalent interest in land
situated anywhere in the world.
This includes previous acquisitions by inheritance or gift, or by a financial institution on
behalf of a person under an alternative financescheme
.
Relief is not denied by virtue of a previous acquisition as a trustee unless the purchaser was
also a beneficiary of the trust.
Relief is also not denied if the purchaser owns or
has previously owned non-residential or mixed-use property, as long as that property did not include a dwelling.
This restriction does not apply where the interest acquired was the grant or assignment of a
lease with less than 21 years to run.
If the property is purchased jointly, all the purchasers must meet these conditions0 -
The higher rate laws back in April did affect me because at the time I owned a property and exchanged on a second one. It was because of the fact that the law was retrospective that I was forced to sell my other property, even though I exchanged 2 months before the law was introduced.
By the time of completion I had already sold my other property and this was my only property in the UK and I paid 16k stamp duty in August, which from what I understand wouldn't apply today
SDLT is payable on completion, not on exchange. As you had sold your existing property prior to competion on the second you wouldn't (shouldn't) have paid the additional 3% SDLT. Even if you had retained the property, if you had completed on the new purchase prior to April 2016 you would not have had to have paid the extra. You would have been aware of this legislation at the point you exchanged, as its introduction had been announced in November 2015.
As you have previously owned a property you wouldn't qualify for the first time buyer SDLT relief.
Without knowing how much the property cost it;s not possible to say if £16k is too much, too little or just right.0 -
Property is just short of £500,000.
Is 16k just about right then? And wouldn't it be zero had I completed today instead of August?0
This discussion has been closed.
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