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Queries on higher rate stamp duty

Stamp duty payable at higher rate on main residence

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I am divorced from my ex wife. The decree absolute was granted on 12/09/2018


The previous matrimonial home is still occupied by my ex wife and my youngest daughter. Under the terms of the divorce 18% of the equity will be payable to me when the property is sold . The remaining 82% will go to my ex wife. This is intended to be when my daughter moves out.This property is my ex wife's main residence. This property is still in the joint names of both my ex wife and I.


Due to the separation and subsequent divorce I purchased another property to be my main residence. I completed on 09/05/2017. My occupancy as a main residence can be proven by utility and council tax bills and voter registration. This property is in my sole name.


My ex wife and I jointly own 3 rental properties . These are held 50/50 and we split the the net rental income 50/50. All 3 rental properties were purchased prior to 2017.


At the time of the purchase of my new main residence on 09/05/2017 I was required to pay stamp duty at a higher second home rate at £12411 on a purchase price of £280140. I now believe this to be incorrect as this is my main home and not a second home and the stamp duty payable should have been £4007.


My queries are


1/ Can I claim back the additional stamp duty already paid as I can prove the property purchased in 09/05/2017 to be my main residence.


2/ How do I avoid being charged higher rate additional stamp duty again if I sell my existing main residence and purchase another property to live in ?


3 / Will I have to pay CGT on the sale of my existing main residence if the HMRC willl not accept this is my main residence ?[ ie they refuse to refund the extra paid]


Replies (5)

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By SXGuy
16th Aug 2019 16:04

In answer to your questions. Seek a paid professional accountant.

This forum is for professionals to discuss accounting matters and not for tax payers to ask for free advice.


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By SteLacca
16th Aug 2019 16:14

Whilst for different reasons, SXGuy's suggestion to engage a professional is the best advice.

You have a complex situation and much will turn on the facts.

A forum is not the place to plan this.

Thanks (1)
By Justin Bryant
16th Aug 2019 17:20

(1) No refund is possible; (2) A simple Google search will explain that; and (3) As the SDLT surcharge rule is unconnected to the CGT PPR rule, it will remain CGT exempt.

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By Accountant A
16th Aug 2019 17:24

Quick freeloader check:

Posts anonymously - tick

Doesn't have the common courtesy to say "please" - tick

Thanks (4)
18th Aug 2019 06:26

1) I don't think you can claim a refund. You still own part of the former martial property and therefore the higher SDLT rates appears to be legitimately due. Please note claiming refunds comes with time limits and therefore should you want to attempt a refund claim you need to act ASAP before you are timed out (you may already be timed out).

2) Given you own a share in the martial property I don't think you will be able to avoid the higher SDLT rates in the future. I think you would have to sell up your interest in the martial property to avoid the higher SDLT rates.

3) CGT and SDLT are to 2 different taxes. If you are genuinely only living in your 5th property you should be able to sell if free of CGT. Given that you have an interest in many properties, HMRC may contact you and ask you why you haven't declared the sale so make sure that you keep evidence that it is your principal private residence.

Please note that I know nothing about SDLT. These answers have just come from a quick google search.

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