SDLT and main home

New rules for 3% surcharge on buy to let

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Miss X owns three properties A[ a former main home now let], B[ a buy to let flat], and C[ a flat in which she now lives].

She marries Mr Z, who owns a flat D in which he formerly lived and which ,since he married Miss X, has been refurbished and is now let. He has moved into flat C.

If the couple now wish to move into a new matrimonial home, can a sale of either flat C or flat D qualify for relief if the new home is purchased only by Miss X  or by both of them provided the appropriate time limits in para 3 Schedule 4ZA FA 2003[ as enacted in s128 FA2016]  are met? 

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By MBK
27th Sep 2016 13:02

Don't understand this question.

There is no relief on a sale - relief is on a purchase.

Are you asking whether they have to pay the extra 3% on the purchase of the new matrimonial home then, as I read the legislation, they have to sell both flat C and flat D in order to avoid it.

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By pacta
27th Sep 2016 13:11

My reading is that the charge will apply. They are deemed to be one entity. They will have more than one property when they purchase their new matrimonial home.

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By Montrose
27th Sep 2016 13:52

Apologies for lack of precision.
Should have read:-
If the couple now wish to move into a new matrimonial home, can purchase of a new home qualify for relief where there is a sale of either flat C or flat D if the new home is purchased only by Miss X or by both of them provided the appropriate time limits in para 3 Schedule 4ZA FA 2003[ as enacted in s128 FA2016] are met?

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By Justin Bryant
27th Sep 2016 16:20

I believe so, yes, but you should perhaps check with an SDLT specialist just to be sure.

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