Online refunds for Stamp Duty Land Tax
A new system is now in place for those applying for a SDLT refund on an additional property where the property sold was a main residence.
Higher rates of SDLT were introduced on 1 April 2016 on purchases on additional residential properties, with the main target being the buy-to-let market and second homes. There will be some circumstances where purchasers will still have to pay the higher rates, even though the property is not a second home.
- where a new main residence is purchased before disposing of a previous main residence the higher rate will be payable. They then have 36 months to sell their previous main residence and claim a refund.
- purchasers will also have 36 months between selling a main residence and replacing it with another main residence without having to pay the higher rates
- a small share in a property which has been inherited within the 36 months prior to a transaction will not be considered as an additional property when applying the higher rates.
The rate is 3% higher and will apply where at the end of the purchase transaction, an individual owns two or more properties.
Reference: GOV.UK SDLT repayment of Higher Rate