Stamp duty refund 2...
 

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[Closed] Stamp duty refund 2nd home conundrum.

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We purchased a second home with the intention of doing it up and eventually moving in and selling our existing house.
Unfortunately i have recently discovered my health is failing and the prospects of refurbishing the second house, which needs extensive work a non starter. We have decided to sell the second house and it is now under offer, we still intend to move and the current property will go on the market in approximately 3 months.
Can we still claim the second home stamp duty back even though we've sold the second home first? tried Google but not found anything definitive.
Any information gratefully received.


 
Posted : 17/07/2019 9:05 am
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I'm not sure but I think it might be classed as a simple money making exercise (i.e. same as buying a house, doing it up and then selling) - in which case the answer might be no.

On top of that you'll be liable for tax on any profit.


 
Posted : 17/07/2019 9:13 am
 DT78
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Surely your property lawyer who helped you buy could advise? Failing that reading the government pages on stamp duty are useful

I managed to get a £10k stamp duty rebate on our last property with a bit of perserverance - HMRC took several months to acknowledge and send a cheque. (different circumstances, ours was a single purchase of 2 properties which we plan to convert back into 1 in the future)


 
Posted : 17/07/2019 1:33 pm
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Do you have any references for that, DT78? Was considering doing a similar thing (buying the house next door and converting back into the original, larger house) but when I spoke to a conveyancer I was told there's no way to claim the stamp duty back. Something to do with reducing housing stock.


 
Posted : 17/07/2019 4:00 pm
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If it becomes your primary home, you can claim back, otherwise no.


 
Posted : 17/07/2019 9:28 pm
 DT78
Posts: 10064
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Flaperon google multiple dwelling relief

Quick google brings up https://www.bdo.co.uk/en-gb/insights/tax/tax-support-for-professionals/granny-flats-remember-to-claim-sdlt-multiple-dwellings-relief

Our conveyancer, and their entire firm hadn’t heard of it, but were great at sorting it out, they have a duty to make sure you pay the right stamp duty so we’re actual open to being sued as they didn’t know about this...

I believe it could also apply if the second dwelling is separate as long as it meets other criteria. I believe you have to buy all properties in the same transaction to get the exemption, so sounds like it wouldn’t apply in your circumstances.

I’m not a lawyer though...


 
Posted : 17/07/2019 9:59 pm

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