In England and Northern Ireland the purchase of a second home is subject to an additional amount of Stamp Duty Land Tax (SDLT) equating to 3% of the purchase price.  Where the second home is a replacement home, but there is a delay in selling the original home, a refund of the additional SDLT can be claimed where the first home is sold within three years of the new purchase.

However, due to the current situation HM Revenue & Customs (HMRC) has recently updated its guidance on exceptional circumstances for claiming an SDLT refund outside of the normal time limit specifically including the impact of Covid-19 preventing the sale.

This allows homeowners to apply for a refund of the higher rate of SDLT even if the previous home was not sold within the three-year time limit, where that period ended on or after 1 January 2020.

SDLT can be complex, particularly when it comes to claiming reliefs.¬† If you would like reliable assistance on SDLT, or any other aspects of tax planning speak to an expert in our Private Client Team or email [email protected]