PeteSouthgate

I’m seeking some advice on an SDLT-related situation. I’m considering the following plan, where I would: Move into my buy-to-let property for 1 year to make it my main residence and qualify for Private Residence Relief (PRR) on any future sale. Purchase a new home, initially paying the 3% SDLT surcharge on the purchase. Re-rent out the buy-to-let for 2 years after living in it, and then dispose of it in the third year. My question is: Would I still be able to reclaim the 3% SDLT surcharge after selling the buy-to-let, given that I intend to rent it out for 2 years after living in it? I’m not sure if re-renting the property would break any clause that would prevent me from reclaiming the surcharge. The reason I'm considering re-renting the property is that it would provide me with rental income for those 2 years, helping me maximize cash flow before disposing of it. Any guidance or references would be much appreciated!

Hello HMRC, I’m seeking clarification regarding the 3% Stamp Duty Land Tax (SDLT) surcharge on second properties and whether I would be eligible to reclaim it when selling a rental property that has never been my main residence. Here’s my situation: I currently own a rental property that I purchased in 2014. I have never lived in this property; it has been rented out continuously since I purchased it. I am planning to buy a new property for £600,000, which I intend to use as my main residence, and I understand that I will have to pay the higher SDLT rates, including the 3% surcharge, as this will be my second property. I am considering selling the rental property within the next 3 years after purchasing the new property. Given that the rental property has never been my main residence, my question is: Would I still be eligible to reclaim the 3% SDLT surcharge once I sell the rental property, even though I have never lived in it? I understand that typically, the property you live in at the time of purchasing the second home or intend to make your main residence matters in determining the eligibility for the refund. However, I am unsure how this applies when the first property was always a rental and never a main residence. Could you please confirm whether I would be able to reclaim the 3% surcharge under these circumstances and clarify any specific rules that apply to selling a rental property? Thank you in advance for your help. Best regards, Pete

@HMRC Admin 19, thank you very much for the reply. Could I ask for some clarity on the following, please? Would I be able to deduct the stamp duty levy initially paid on the purchase of the property against the capital gains tax? Thank you for your assistance!

I am seeking some guidance on the tax implications related to the disposal of my property. Here’s a bit of background to help clarify my situation: - I purchased a property in 2014. - Since the purchase, the property has been rented out continuously. - I have been living abroad for the last 10 years, working self-employed online, and residing with my elderly parents. - I am uncertain if the property qualifies as my main residence due to my absence and the continuous rental status. Currently, I am considering two options: - Selling the property at the end of the tenant's tenancy this year. - Moving into the property at the end of this year, living in it for 2 years, and then selling it. I need assistance in understanding the tax implications for each scenario, specifically regarding: - Private Residence Relief (PRR): Whether I am eligible for PRR given that I have never lived in the property, and if so, how it would be calculated. - Letting Relief: Whether I qualify for Letting Relief in both scenarios, and how it would impact my CGT liability. Scenario 1: Selling the Property This Year -What are the tax implications if I sell the property after the tenant moves out? - Would I be eligible for any PRR or Letting Relief despite never having lived in the property? Scenario 2: Moving In and Then Selling After 2 Years - If I move into the property at the end of this year and live there for 2 years, how would PRR be calculated? - Would I qualify for Letting Relief, and if so, how would it impact my CGT calculation? Additional Details I believe I can claim to reduce the CGT bill: - I spent £120,000 on improvements to the property. - Original purchase costs included £13,050 SDLT, £978 legal fees, and £270 Land Registry fees. I appreciate any insights or advice on these matters. Understanding the tax implications will greatly help me decide the best course of action. Thank you for your assistance!

I'm due to complete self assessment for the first time that will include income from a rental property and PAYE. Background: Basic rate tax payer, employed, employer has a standard workplace pension but I have opted to do salary sacrifice in the tax year (I have my annual statement from Aviva which shows the figures). When completing my self assessment, I'm looking to confirm what numbers need to be included in the below section. There are two sections, I would like to know what is the correct section, for reference I have made three seperate payments amounting to £12,500: "Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source). Enter the payments and basic rate tax OR Total of any 'one-off' payments to registered pension schemes included in the 'Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider' box: Is the correct answer: #1. £12,500.00 * 0.2 = £15,000 And if so, which of those two options should I put the information in? It's my first time using a SIPP, bearing when I made a £12,500 contribution the pension provider will only claim the 20% tax relief in 6-8 weeks and post it to my account. Should I put I have contributed £12,500 to my SIPP on my tax return or should I be putting £12,500 * 0.2 = £15,000. Sorry for all my questions but I am a very apprehensive about including a wrong figure on my return.

Hi everyone, I have a couple of questions regarding rental property expenses for tax purposes, and I'd appreciate some advice or clarification from those familiar with HMRC guidelines. Roof Repair Expense: I recently had to undertake a roof repair on my rental property due to leaks, which cost approximately £8000. I'm wondering if this expense qualifies as a deductible rental expense or if HMRC would classify it as a capital expense. Any insights on this matter would be very helpful. Handling VAT on Expenses: When reporting allowable expenses on my tax return, should I use the net or gross figures? Most of my maintenance bills from contractors include VAT in the final price. I assume I should input the total amount stated on the bill, including VAT, on my tax return. Could someone confirm if this is the correct approach? Thank you in advance for your help!