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]