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UK Government to relax stamp duty land tax surcharge reclaim date

Earlier this month, the UK Government announced its intention to extend the three-year period to sell a residential property, which triggers a refund of the supplemental 3% charge paid on purchasing an additional residential property in England.

We understand that:

• the extension will apply to refund windows ending on or after 1 January 2020, so only supplemental charges paid on purchases after 1 January 2017 will be refunded;

• relief will only be available where the previous residence was not sold within the three-year window due to “exceptional circumstances” outside the sellers control;

• the sale must be made as soon as possible after the exceptional circumstance has passed.

It has been confirmed that exceptional circumstances include the impact of coronavirus (COVID-19).

The introduction of this extension to the three-year period for reclaiming the supplemental stamp duty land tax charge is a most welcome change, considering the circumstances that have overtaken us this year. However, it needs to be noted that each application will be considered on its own merits and there is no guarantee that this extension will apply in all circumstances.

If you need specialist advice, guidance or support from our team of legal experts, please email or call us on 02920 224433.

Please contact James Pearn, Partner and Head of Property at Loosemores to find out more.

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