Extra 3% SDLT exemption/refund on probate properties?

by Readers Question

8:21 AM, 9th September 2020
About 3 months ago

Extra 3% SDLT exemption/refund on probate properties?

Make Text Bigger
Extra 3% SDLT exemption/refund on probate properties?

Hello peers, My question is regarding exemptions to the extra 3% SDLT (Stamp Duty Land Tax) currently payable on investment properties.

Is my understanding correct that the SDLT paid on probate properties is eligible for a refund if they’re turned around and sold again within the year? I appreciate your time!

DP

Editors Notes: HMRC >> https://www.gov.uk/guidance/stamp-duty-land-tax-relief-for-land-or-property-transactions#building-company-buys-an-individuals-home

Stamp Duty Land Tax relief for land or property transactions

Building company buys an individual’s home

If a building company or property trader buys a home from someone who is buying a new home from them, the property bought by the house builder or property trader is exempt from SDLT if certain conditions are met.

The area of land that the building company or property trader buys along with the old home must not go above certain limits (normally 0.5 hectares) and the person selling the home must:

  • have lived in the property as their main or only home at some time during the 2 years before the building company or property trader bought it
  • buy a new home from the house building company
  • intend to live in the new property as their main or only home

This relief does not apply to individuals who swap houses.

To claim this relief enter code ‘08’ in the SDLT return.

Find out more in the HMRC SDLT manual.


Share this article

Twitter Facebook LinkedIn

Comments

Neil Patterson

8:23 AM, 9th September 2020
About 3 months ago

HI DP,

I was not familiar with this but after a search found:

Where a property trader purchases a dwelling from the personal representatives of a deceased individual, the purchase will be exempt from SDLT if all the following conditions are met:

The purchase is in the course of a business that consists of purchasing dwellings from the personal representatives of deceased individuals
The deceased individual occupied the dwelling as his main or only residence at some time in the two years ending with the date of their death and
The area of land acquired does not exceed the permitted area – Permitted area being 10,000sqm

DParker

13:46 PM, 9th September 2020
About 3 months ago

Reply to the comment left by Neil Patterson at 09/09/2020 - 08:23
Thanks very much, Neil.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Claiming possession of a part of my garden leased from the council?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More