Deadline for SDLT extended for main residence disposals

Jun 22, 2020
Stephen is one of the firm’s tax partners. He specialises in income tax, capital gains tax, corporation tax, inheritance tax, and stamp duty land tax. He also specialises in advising property and construction businesses.
Stamp Duty Land tax

Deadline for SDLT extended for main residence disposals

In 2016 the Government introduced a 3% surcharge on purchasing second homes. If you buy a new home and your previous home has not sold at the time of the purchase, this charge applies. But it is possible to claim the 3% surcharge back if you sell your old home within three years of purchasing your new home.

But, because the coronavirus lockdown has brought the property market to a halt, HMRC has decided to extend this three-year deadline, if the disposal of your property has been delayed because of coronavirus. To be eligible for a refund after the three-year deadline you will need to provide evidence that the delay in selling your previous home was due to reasons outside your control. Additionally, the previous home must be sold as soon as reasonably possible.

HMRC announced this relaxation especially for coronavirus but it could also cover different reasons. For example, a public authority preventing the sale of a property. HMRC have said that they will consider each application separately. If you are unsure if your situation qualifies as an exceptional circumstance, you can see further details and examples here.

Please note that this announcement only applies to England only.

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Stephen Charles

Tax Partner, Sheffield