A: If the previous home has not been sold before the new one is purchased then the additional 3% rate (4% if the property is in Scotland (LBTT) or Wales(LTT)) will apply on the purchase of the new home. However, if the previous home is sold within 36 months (18 months if the property is in Scotland) of the purchase of the new home then relief is available for the replacement of their main residence and a claim can be made for a refund of the additional 3%/4% duty that was paid.
The refund is claimed by amending the original return within 12 months of the later of;
a) the effective date of the disposal of the previous main residence, or
b) the filing deadline for the return.
These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.
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