Buy-to-Let Tips

2

QUESTION

Posted by adamski707 1 month ago

Can I claim stamp duty refund?

Hi all - is anyone able to help with the query below please, or point me in the right direction for advice!

I purchased a flat in 2007, and lived there until 2019.
At this point, I rented another house to live with my partner. The purchased flat was empty for a bit, and then I let it out under consent to let.
In 2022, I purchased a house, moved into it from the rented house, and around the same time converted the mortgage on the flat to a buy to let one. When purchasing the house, I paid the additional stamp duty.
Coming up to three years later, I'm wondering if I'm able to sell the flat (with the buy to let mortgage on it) and claim the stamp duty refund? The wording on the gov website is "You must have sold your previous main home within 3 years of buying the new property". Does the fact that the rented flat wasn't my 'main home' at the time of the purchase of the house therefore mean that I can't claim stamp duty refund?

If anyone IS able to help on this, it would be massively appreciated! Thanks in advance.

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Comment

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Posted by Mysterious_Act_3652 1 month ago

I think you would get away with that. You are still selling the second property so I think it’s reasonable to claim. Maybe check with a conveyancing solicitor though.

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Posted by TravelOwn4386 1 month ago

Although it's cutting it fine on dates flats take an age to sell and the conveyancing process I would say ops chances for completing within 3 years is slim seeing as the clock for that three years is less than 7 months depending on if they completed in December 22.

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Posted by adamski707 1 month ago

Thanks - I do already have a cash buyer for the property. The other issue I'm having is getting rid of the tenant :(

I just wanted to double check that I CAN actually get the stamp duty refund before I apply for a possession order.

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Posted by TravelOwn4386 1 month ago

Well my section 8 was fast and took 6months some evictions can take between 1-2 years. The searches and conveyancing take and age for leasehold and flats in general. I wouldn't think you can exchange and complete quick enough for the refund have you started the eviction process?

Also someone pointed out that the clock started when you moved out so you are past the 3 years.

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Posted by adamski707 1 month ago

I've served a section 21, which has just expired, so now I'm looking at applying for an accelerated court order for possession. But if its looking like that will take too long then I might just give up on trying to get the stamp duty rebate and cancel the sale.

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Posted by TravelOwn4386 1 month ago

Yeah I think you are past the 3 year period as it wasn't your main residence within the last 3 years.

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Posted by Twizzar 1 month ago

See HMRC guidance - you must have lived in your old house as your main residence within the 3 years before the purchase of the new property. Depending on your exact dates you could be out of time

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

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Posted by LtRegBarclay 1 month ago

Sounds like the property you are selling wasn't your only or main residence in the 3 years prior to bring sold, which would prevent you meeting the criteria. See Para 3(6)(c) Sch 4ZA Finance Act 2003. The clock started when you moved out in 2019.