HMRC to clarify Stamp Duty Surcharge rules finally

HMRC to clarify Stamp Duty Surcharge rules finally

11:08 AM, 16th February 2018, About 6 years ago 10

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Will I pay the additional 3% Stamp Duty Surcharge?

This is by far the single most commonly asked question to Property118 and it is about time HMRC made the rules far clearer and easier to understand. Even professionals are getting it wrong including solicitors.

Government released figures reported on a while ago show 15,700 purchasers wrongly paid the 3% surcharge when they unknowingly could have applied for a refund.

One particular transitional rule that is little know, and reported to have caught an estate agent out into needlessly paying the SDLT 3% surcharge is: If a BTL or multiple property owner sells their first main home before November 25 2015 when the surcharge came in and completes on the purchase of a new main residence before November 26 2018, there is no 3% extra to pay.

However, HMRC look to be clarifying the rules after criticisms from the Law Society.

Member of the Law Society’s conveyancing and land law committee, Sarah Dwight, said: “It is a very complex area and the guidance does not give conveyancing lawyers much clarity.

“HMRC seems to have thought the guidance it issued was going to be sufficient, but there are so many different types of scenarios that arise when people are seeking to buy and sell a property, that not everyone fitted into HMRC’s boxes.”

An HMRC spokesperson told the FTAdviser: “We keep all guidance under constant review, including taking legal developments into account. HMRC is working to update its guidance on the higher rates of stamp duty land tax.”

Click Here to see existing HMRC guidance


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Sunny Somerset

12:06 PM, 16th February 2018, About 6 years ago

That chart needs updating. You can get a refund is you sell within 3 years (not 18 months)

Christopher Marsden

12:10 PM, 16th February 2018, About 6 years ago

My son and his wife are moving with his job and after renting for a period they are buying a new house which will be their PPR. They are keeping their flat as a rental investment. Will the new purchase atract the additional stamp duty?
Looking at the logic tree his situation does not seem to fit.

David Atkins

12:24 PM, 16th February 2018, About 6 years ago

If the flat they are keeping as a ‘rental investment’ is owned in their personal names then they are no longer first time buyers and the second home stamp duty will apply. You need to read the guidance published in November 2017. If you already have a property you are no longer a FTB (First Time Buyer). Just had a very similar conversation in another forum. If they are renting the flat that they are keeping as a ‘rental investment’ then there are other variables to consi

Neil Patterson

13:26 PM, 16th February 2018, About 6 years ago

3 years is correct but HMRC have not updated it and it is the most useful flow I have found 🙂

Neil Patterson

13:29 PM, 16th February 2018, About 6 years ago

The 3 % surcharge will apply as they will end up wirth more than one property and are not selling a previous main residence


9:02 AM, 17th February 2018, About 6 years ago

We have inherited a portion of the family home early from our deceased mother. Our father has his half and a portion of our mother's. We are looking to buy a home (sister and myself would be on the deeds). Are we considered to have a house already (we don't live there) and would we have to pay the extra 3% slab tax?

Yvonne Patterson

9:11 AM, 17th February 2018, About 6 years ago

Hi Michael,
Assuming you are on the title deeds and you are not selling your share then yes you would own more than one property at the end of the transaction and pay the 3% surcharge. Unless there are more quirks like the one mentioned in the article I am not aware of. Hence needing clarification.


15:42 PM, 17th February 2018, About 6 years ago

This issue is really confusing and does need clearing up.

My wife and I (both high rate tax payers) currently own our own home. We would like to transfer the home into a Limited company to rent out and s purchase a new main home.

My mortgage broker has advised that I will be liable for the additional 3% on both properties whilst my accountant has advised that i will only be liable for the additional 3% on the property that i am transferring into the company.

i sought advice from a second accountant who advised i would be liable for tge additional stamp on both.

This has left us really confused.


14:42 PM, 19th February 2018, About 6 years ago

I have 2 buy to let properties. I am buying a residential home with my partner. I have been living with his brother for free and registered at his address.
I have never been registered on any of my buy to let properties. As my main residence is at my brother in law house which I pay no rent nor is it on my name buying our first residential home would I still have to pay the high stamp duty rate?

Neil Patterson

15:00 PM, 19th February 2018, About 6 years ago

Yes unfortunately you will pay the 3% Surcharge. If you see the flow you will end up with more than one property and you are not selling a main residence.

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