Can Main Residence Relief be applied in a Multiple Dwellings Relief purchase?

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    Can Main Residence Relief be applied in a Multiple Dwellings Relief purchase?

    This situation won't come up very often but an interesting thought nonetheless.

    I may be purchasing a freehold house. It's physically and lawfully (under planning rules) split into 3 flats but not split into separate leases.

    Let's say the total price is £900k. Under Multiple Dwellings Relief I would pay SDLT at the +3% rate on £300k. That's £14k and I would pay that three times so the total would be £42k.

    What if one of the flats is to become my Main Residence and I have sold any previous Main residence? Would I be able to pay SDLT at the normal rate for one of those £300k elements. That would be SDLT of £5k and therefore a reduction of £9k.

    Thoughts? I'll call HMRC and confirm either way this week and update the post.

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  • Let Property Campaign.
    by armour
    Hi all,

    A friend of mine has been renting out a flat since 2004 and has not declared any of the income to HMRC in all that time.

    She wants to come clean and pay the accumulated income tax she owes by making a non-prompted disclosure using the Let Property Campaign system....
    13-09-2021, 13:45 PM
  • Reply to Let Property Campaign.
    by theartfullodger
    See..
    https://www.landlordzone.co.uk/news/...erty-campaign/

    Well done HMRC..

    None of my business, and obviously not in anyway a criticism of anybody, but If I had had a friend who I found out had been fiddling tax for 16 years they'd no longer be my friend.
    ...
    18-09-2021, 11:46 AM
  • Reply to Let Property Campaign.
    by armour
    Fair enough. Thanks for your advice. It is on cash basis.

    I guess it would only save her 50 odd quid anyway, maybe less than £80 once the fine and interest is added. I guess she'll have to swallow that.
    Once again, thanks JP and Gordon for your help.
    Chris
    18-09-2021, 09:07 AM
  • Overseas Landlords
    by Santa Fe
    I'm from UK but live overseas and recently discovered that I should be registered as an overseas landlord. I've done a bit of research on what it involves and it seems a bit of a headache - tenants have to fill out forms and pay tax from their rent direct to HMRC. If anyone here is registered as an...
    16-09-2021, 16:44 PM
  • Reply to Overseas Landlords
    by Santa Fe
    Boletus, thank you.
    17-09-2021, 18:37 PM
  • Reply to Let Property Campaign.
    by jpkeates
    armour - Sorry, I don't know.
    It might depend on whether you're accounting on the cash basis (in which case I suspect not) or the accrual basis (when it's possible).

    But it's not something I ever got involved with when the W&T allowance existed, and all of the practical guidance...
    17-09-2021, 11:43 AM
  • Reply to Let Property Campaign.
    by armour
    Thanks JP, that's clear. I'll put the bathroom in with the income tax then. I guess it's much of a muchness anyway as the associated reduction in interest and fine will probably equal out.

    I have one last question, if you'd be so kind.

    During the year she had to make the eviction,...
    17-09-2021, 09:18 AM
  • Reply to Overseas Landlords
    by boletus
    You fill out this form requesting to have rental income without deduction of tax and pay it yourself;

    https://www.gov.uk/government/public...dividuals-nrl1
    16-09-2021, 17:26 PM
  • Reply to Let Property Campaign.
    by jpkeates
    The 10% was for furnishings, so built in stuff should be ok to claim.
    The bathroom refurb depends on what was done if it was simply a replacement, it's maintenance, if it was a significant upgrade, it's likely to be part capital/part maintenance.
    If it's a new bathroom, it's probably ca...
    16-09-2021, 08:37 AM
  • Reply to Let Property Campaign.
    by armour
    Seems pretty clear there JP. I'll go ahead and alter my calculations

    One more thing, My friend had a bathroom refurb and a built in oven and hob replaced during the period when the flat was let furnished. I'm pretty sure that these costs can be detucted in addition to the 10% W&T, but...
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