Good news for those out of time to claim an SDLT refund

Following pressure from a number of professional organisations, the government have conceded to relax the 3 year time limit to sell your property and claim a refund of the 3% Stamp Duty Land Tax (SDLT) surcharge where the delay in sale was caused by the coronavirus pandemic.

House purchasers in England and Wales who found themselves out of time to claim a refund of the 3% SDLT surcharge on the purchase of their second home due to a delay in sale of the first property may still be able to make a claim.

HMRC will now accept that a delay in sale caused by the coronavirus pandemic is a reasonable excuse and will therefore allow claims made outside of the normal 3 year window on this basis, provided the taxpayer is able to demonstrate that the coronavirus caused the delay. There is no set time limit for a sale within the relaxation of the rules, HMRC guidance merely requires the taxpayer to sell the property as soon as they reasonably could.

Whilst this relaxation is welcome, it should be noted that it does not extend to all instances in which the 3% surcharge applies. For those who sold their former home and have been living in rented accommodation, if the delay in purchasing a new main residence is more than 3 years, no relief will be available against the SDLT surcharge.

If you would like to discuss the implications of these changes to your personal position, or would like to claim the SDLT refund, please contact Gemma Hedges on 023 8046 1259.