Recovering 3% SDLT surcharge but selling to Ltd co?
I wondered if anyone could advise me on a question relating to the 3% surcharge on SDLT for additional properties and in particular when replacing a main residence.
I currently own three properties (my main residence and two buy to let properties). If I was to replace my main residence this year by purchasing a new property, but within 3 years of this sell my previous main residence to my ltd company will I be eligible to recover the additional 3% surcharge on SDLT which will have been payable at the time of the new purchase (on the basis that I was replacing my main residence and no longer own the original main residence in my name)?
Many thanks
Josh
Editors Note: HMRC click here
“Details
You can apply for a repayment of the higher rates of Stamp Duty Land Tax (SDLT) for additional properties because you’ve sold what was previously your main home if you’re:
- the main buyer of the property which attracted the higher SDLT rates
- the agent acting for them
You must have sold your previous main residence within 3 years of paying the higher SDLT rates to qualify for a refund.
HM Revenue and Customs must have your request within 3 months of the sale of your previous main residence or within 12 months of the filing date of the return, whichever’s later.
To apply for a repayment you can:
- use the online form (sign in or set up a Government Gateway account)
- fill in the form on-screen, print it off and post it to HM Revenue and Customs
Send the completed postal form to:
HM Revenue and Customs
BT – Stamp Duty Land Tax
BX9 1HD
United Kingdom”
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Member Since February 2011 - Comments: 3454 - Articles: 286
8:36 AM, 16th April 2018, About 8 years ago
Hi Josh,
Yes you are correct that you would get a refund within 3 years if you sell to a completely separate legal entity eg a Ltd co. See Editors notes above.
However the Ltd co. would then be paying the same Stamp Duty on the purchase so it would be a Heads HMRC wins – Tails you lose scenario.
Member Since August 2015 - Comments: 5
9:13 AM, 17th April 2018, About 8 years ago
Hi Neil, thanks for the quick reply, much appreciated. Josh