3% stamp duty tax claim?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    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

              Latest Activity

              Collapse

              • Will they raise taxes again?
                by JK0
                My accountant just finished my 2020/21 tax return, and my income is half of the previous year. I did not think it would be quite that bad. (Half my tenants moved out, and I had a job to replace them. Plus had to get fourteen EICR's!)

                I'm guessing you guys are in a similar boat. Never mind...
                27-11-2021, 20:20 PM
              • Reply to Will they raise taxes again?
                by JK0
                The EICR's cost around £12k in total....
                27-11-2021, 22:48 PM
              • Reply to Will they raise taxes again?
                by Neelix
                14 EICRs isn’t going to dent the income from 14 properties

                its the void periods that cost you...
                27-11-2021, 22:37 PM
              • Reply to Corporation Tax
                by Thurrock1
                jpkeates,

                the other directors can't withhold information from them - I am my husband's agent as he has dyslexia and has difficulty with all this. This has been explained to the director but he does not like me and chooses not to recognise in that case anything I/my husband writes.
                ...
                25-11-2021, 09:39 AM
              • Corporation Tax
                by Thurrock1
                Hi, Please can someone tell me if Corporation Tax only becomes payable to the IR on sale of an asset.
                My husband is a director of a property development company - there are only 3 directors.
                He wants to leave and there is no communication with the other directors and it is difficult to get...
                23-11-2021, 19:15 PM
              • Reply to Corporation Tax
                by jpkeates
                If your husband is a director, the other directors can't withhold information from them; unless there are some very specific rules in the company articles - and they wouldn't normally be appropriate in a property development business (which are usually set up with boilerplate documentation).
                The...
                24-11-2021, 18:36 PM
              • Reply to Corporation Tax
                by theartfullodger
                IR (The Inland Revenue) were dissolved April 2005. Advise against sending them payments....
                24-11-2021, 17:50 PM
              • Reply to Corporation Tax
                by Thurrock1
                Thanks Gordon999. I have been phoning around about this today. This is a property development Ltd co. it had problems and so in 5 years only managed to develop 1 property - a house into flats. My husband owns one third of the company.

                It is not being sold. The other directors need to...
                24-11-2021, 17:47 PM
              • Reply to Corporation Tax
                by Gordon999
                The company pay CT on the "trading profit" reported in the annual accounts.( which are filed annually at Companies House).

                After the asset (the building) has been sold, the trading profit will be reported in the next annual accounts by accountant and CT will be payable to...
                24-11-2021, 11:33 AM
              • Reply to Student HMO and Holiday let
                by Neelix
                In most areas student houses don't pay council tax ....... move in a "non student" and Council tax will apply
                18-11-2021, 07:54 AM
              Working...
              X