SDLT Higher Rate

Purchase of a FHL

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Hi all

I have two clients (lets say Paul and Amanda) who are cohabiting and have recently bought a new FHL.

Their situation is that they live in a house owned by Paul, but Amanda also owns a property that she rents out.

Having bought the new FHL they have fallen under the rules of the higher rate SDLT.

Am I correct in thinking that this cannot be reclaimed unless one of them decides to sell their other properties within the next three years?

This is the first time I have come across these SDLT rules, so any input would be much appreciated!

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By Portia Nina Levin
22nd Nov 2016 10:32

They are paying the 3%. End of, unless there is any intention of using this FHL as their main residence?

Even then Amanda is paying the 3%, unless she has used her rental property as her main residence.

Get Paul and Amanda together, and give them each a great big slap from Portia, and tell them that if they need advice, they need to give clearer instruction before the go entering into any contractual commitments.

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