Stamp duty tax on 2nd property

[george price]

My daughter owns a flat outright (it was her principle residency for 7 years) and back in March this year purchased a house with her partner under £500,000 receiving the benefit of of Stamp Duty free relief.

However, she did pay the higher standard duty tax of £13,500 due to it being a second property. 

She is keeping the flat and after refurbishment, she will be renting out the flat later this month.

Is she entitled to claim some or all of the SD tax back due the the house (and being higher value property) being her principle residence.

Thank you

 

 

[Richlist]

I don't believe so.

I think you only get to claim the SDLT back if you sell the property within a specified time (2 years I believe).

The HMRC web site has lots of info & guidance on what, who & when. 

[Melboy]

I can answer that question as well. Been there and done it.  You have 2 years in which to sell your primary property and claim back the stamp duty on any 2nd home purchase. 

If you choose not to do this and rent your primary property out then when you come to sell it, if you decide to do that, then you can set that extra stamp duty you paid against any Capital Gains tax you may be liable for.

As Richlist has stated best you read up on the rules and regs. on the Government website for the best detailed information.

[george price]

Thanks for your help, this is as I understood, but someone said, obviously wrongly,  that if she rented out her home of several years and bought a new property she would not have to pay the SDLT.