Property News & Views
HMRC agree to pay back delayed Stamp Duty costs —
14th Jun 2020
Home owners stuck in a tax trap because of the Covid 19 pandemic have been offered a reprieve by the Government. HMRC has pushed back the deadline for additional stamp duty refunds for house sales that were delayed by the outbreak. The tax trap was inadvertently created by the lock down. In April 2016 the Government introduced a 3% stamp duty surcharge on homes bought in addition to a main residence. Buyers could apply for a refund of the extra tax paid on the second property if they sold their old home within three years and the new home became their primary residence. When the Government froze the housing market on March 27 this refund regime was thrown into chaos. Many buyers were forced to delay sales unless they were legally bound to proceed.
Now, anyone whose three year deadline fell from January 2020 onwards will be granted an extension if they write to HMRC to explain how the pandemic has delayed the sale. More clarity is expected from the Government soon as the guidance on what constitutes a valid reason for an extension is vague.
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