SDLT reclaim?

by Readers Question

15:34 PM, 23rd October 2019
About 3 weeks ago

SDLT reclaim?

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SDLT reclaim?

I have a question based on the below scenario:

Property A purchased by Mr. X as residential. Mr. X moved away for work and was renting. During this period converted the residential to BTL.

In the meantime found another as residential property B and purchased jointly as Mr. and Mrs. X’s main residence. Paid higher rate SDLT.

Now in the process of disposing of the BTL. In normal circumstances will be eligible for a refund on the higher rate that was paid for property B.

However, Mr. and Mrs. X want to invest for in more properties while the sale of Property A is still underway. They understand they will have to pay higher rate SDLT for the new properties.

Will they still be able to reclaim the higher rate SDLT refund. Is there a way if not individually buy it as an Ltd company and this will help for reclaiming the refund.

Thank you.

Dev



Comments

Neil Patterson

15:36 PM, 23rd October 2019
About 3 weeks ago

From Mark Alexander:

"Subject the statutory time limits, and if the additional properties were purchased within a Limited Company which pays the higher rate SDLT, the SDLT reclaim on the sale of the former PDH would indeed be valid in my opinion."


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