Reclaiming Stamp Duty Land Tax.
When the government introduced a higher rate of stamp duty land tax (SDLT) for owners of more than one residential property, it was designed as a measure to target buy-to-let investors. Unfortunately the measure also affects those innocent buyers who have to buy a second property before being able to sell their old one.
The good news is that once the old property has been successfully sold, the extra tax can be reclaimed. In its original form, the higher rate of SDLT could only be reclaimed if the old property was sold within 18 months, but this was subsequently increased to 3 years.
It is important to be aware of the deadlines for making a claim. For sales completed on or after 29th October 2018, the refund must be claimed within twelve months of the sale of the old home or the filing date of the SDLT return for the puchase of the new home, whichever is later.
Author: James Cornthwaite FCA CTA
A former pupil at St Aidan’s C of E High School, James attended Blackpool Sixth Form College and Lancaster University, graduating in 2004, gaining BSc. first class honours. He joined Moore and Smalley, Preston in 2005 and qualified as a...
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