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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