Fergus Wilson Panorama documentary – now available on iPlayer22:10 PM, 18th March 2019
About 6 days ago 96
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
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More