SDLT Recovery on Selling Query

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    SDLT Recovery on Selling Query

    Say my wife and I buy a house as a second house. We would pay SDLT at the current rate plus 3%.

    If in a few years' time we sell the house and the house has gone up by a considerable amount such that we have to pay CGT.

    On selling, is the full SDLT paid recoverable against our CGT bill?

    Or is the SDLT considered to be part of the purchase and included in the purchase cost?

    As an example for this case.
    Property Purchase price = £200,000
    SDLT = £5000 (made up figure)
    (Ignoring all other costs)

    Property sold for £300,000.

    In this case, when calculating CGT, is the original property purchase price figure used £205,000 (£200,000 + £5000 SDLT) or just £200,000?

    Thanking you for your reply.

    #2
    SDLT is a cost associated with the purchase and can be deducted from the gain before tax is calculated.
    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).

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      #3
      I agree with jpk. Your entry cost is £200K. + £5K sdlt + conveyancing solicitor costs + Land Registry costs.

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