3% stamp duty tax claim?

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    3% stamp duty tax claim?

    I have several BTL’s, but recently sold off part of my residential garden to a builder, I then rented out my residential home, with the plan to sell once the plot had been built and therefore claim back the extra 3% stamp duty I paid on my new home I brought. After 1 year I have a good tenant in place and have decided to keep the house and add it to my ongoing portfolio.
    finally my question.... can I claim back(as a capital expense) the 3% extra I paid for my new home property as I only incurred the fee because of the BTL investment?
    thank in advance any help!

    #2
    There's no CGT on your private residence.
    Your residence is not part of your business and therefore capital expenses incurred on it can't be applied to the business.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      I understand that if I was buying a second home and also using my pervious house to live in, but as I’m solely living in the new house and the previous house is now an investment I wondered if the 3% extra I paid on my new home which was only enforced because I had now invested my previous home into a BTL. In other words had I sold my Previous house and brought a BTL and a new home the 3% would have applied to the BTL and I would have claimed it back as an expense, so why is this any different(if not a bit complicated)?

      Comment


        #4
        You can possibly claim back the 3% if you were replacing a previous main residence with a new one, but the dates have to be within a certain period. And your conveyancer should have considered that when buying the new property.

        If you have a portfolio, you already had more than one property when you bought your new home anyway, which would have triggered the additional 3%.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          If your now letting your former home then I dont believe you can claim back the 3%

          Comment


            #6
            I’m not trying to claim it back, more right it off as an expense. It’s a cost that has purely come about due to an investment, in the same way I had to have a gas certificate and electrical certificate, both of which I can put against my profit.

            Comment


              #7
              But the expense is nothing to do with the business, it's simply a consequence of it existing.
              The cost of the gas certificate is a business expense because it was incurred on the rental property,
              The increased SDLT was incurred on a property that is outside the business.

              It's like trying to claim that the tax you pay on the increased income you receive is a business expense because you wouldn't pay it if the business didn't exist.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment

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              • Reply to Selling part share
                by AndrewDod
                Well if CGT was not payable on the first slice it won't be on the second.

                I don't see that you retained a benefit, but I can't find any case law to that effect. But if rent was payable it would have gone in both directions (you would have paid your son half the rent and he would have paid...
                31-03-2020, 18:19 PM
              • Selling part share
                by Bill31
                5 years ago i gifted part of my property to my son as joint tenants. We lived in the property together. So its possibly a grob.

                Now we want to go our separate ways. Could he buy my share out so he owns the whole house. And i use the money to buy elsewhere. Could this introduce a IHT or...
                31-03-2020, 13:41 PM
              • Reply to Selling part share
                by Bill31
                Interesting that it may not be a grob as we own it all together. But surely hmrc will view it as i retained a benefit.

                Its our only main property i dnt think any cgt will be due. I was asking will cgt be due if i make another gift or sell my share to get my name of deeds?
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                31-03-2020, 17:35 PM
              • Reply to Selling part share
                by AndrewDod
                Although they were BOTH living there and both owned it -- so the share gifted is probably not a GROB. It would be if only the OP was living there (owning only a portion) and not paying rent.

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                by Bill31
                Ok thanks.
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                31-03-2020, 16:33 PM
              • Reply to Selling part share
                by jpkeates
                If you gift someone a property (or part of one) and carry on living there, the gift has reservations.
                So you either need to move out or start paying market rate rent to live there to end that situation.

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                by Bill31
                Grob meaning gift with reservation.

                What if the purchase is below market value. The share is worth a market value of 250k but i can only afford to pay 200k. How will hmrc view it?

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                by jpkeates
                I don't know what a grob is in this context.

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