Below is a Guidance Note from HMRC in respect of the re-claiming the higher rates of HMRC incurred from the purchase of a second home.
Claiming a repayment
- 6.4 If a previous main residence is sold within 3 years of paying the higher rates on a new main residence a refund is available. A refund can be claimed by making an amendment to the original return. Repayments need to be claimed within 3 months of the sale of the previous main residence, or within 1 year of the filing date of the return, whichever comes later.
- 6.5 The refund is for the amount of SDLT paid above what would have been charged had the property not been an additional residential property. This can be calculated using the online SDLT calculator which is available on GOV.UK.
- 6.6 A repayment can be claimed by completing a SDLT repayment request form. This will be available on gov.uk from 1 April 2016. The form will need to be completed online and the summary printed and posted to HMRC Birmingham Stamp Office. In due course a form will also be available which can be submitted online. This will require the individual completing the form to verify their identity.
- 6.7 The form can be completed by either the main purchaser who paid the higher rates of SDLT, or an agent acting on their behalf. Certain pieces of information will be needed to complete the form: the SDLT UTRN from the property which the higher rates were paid on and the name of the purchaser of the property which has been sold. If the form is completed by an agent, and the payment is to be made to the agent, then a signed letter of consent from the main purchaser will need to be attached to the form.
- 6.8 HMRC aims to process all repayments within 15 working days of receiving all the information requested in the form. HMRC will issue the payment by payable order, or will issue a letter explaining why the request has not been successful.
It would appear that the onus is on the client to recover the SDLT due to them – as we would require a letter evidencing their consent if we were to do it on their behalf. The clients will however require the UTRN for the higher rates transaction – which is printed on the SDLT5 certificate that we receive once the return has been submitted.
To find the form referred to on the gov.uk site – please see link below:
https://www.gov.uk/guidance/apply-for-a-refund-of-the-higher-rates-of-stamp-duty-land-tax
