Recovering 3% SDLT surcharge but selling to Ltd co?

Recovering 3% SDLT surcharge but selling to Ltd co?

8:32 AM, 16th April 2018, About 7 years ago 2

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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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Neil Patterson

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8:36 AM, 16th April 2018, About 7 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.

Josh Ellicock

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9:13 AM, 17th April 2018, About 7 years ago

Hi Neil, thanks for the quick reply, much appreciated. Josh

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