Q My husband and I offered our principal residence in August 2017 and are utilizing the cash from the sale to purchase a brand new residence for us to reside during which will value £445,000.
Nonetheless, about 4 years in the past I purchased a flat with my daughter which she lives in and which I additionally used when working away from residence. We’re planning to promote the flat subsequent yr. However till we do, I’m nervous that I should pay the next charge of stamp responsibility land tax on our new residence.
A Since you are changing your previous principal residence with a brand new principal residence inside three years of promoting your previous residence, you received’t need to pay the upper charge of stamp responsibility land tax (SDLT) although you collectively personal a flat together with your daughter.
For those who had purchased your new residence earlier than promoting your previous one, you’d have needed to pay the upper charges. However you’d even have been capable of declare a refund supplied you managed to promote the previous one inside three years of shopping for the brand new one. Following a tinkering with the foundations for SDLT refunds in final Monday’s finances papers, you now have 12 months from promoting your previous residence to make a profitable reclaim or a yr from the date you paid the increased charges of SDLT on the brand new residence, whichever comes later.