VAT: Expenses and benefits, Tax-free childcare, Reclaiming the SDLT supplement

Last week we take a look at the requirements for reporting expenses and benefits to HMRC for the 2016/17 tax year. We also examined the new Childcare Choices website and the options for tax-free childcare in 2017 and beyond. Finally, we explained how to claim back the stamp duty land tax supplement where a former main residence is sold subsequent to the purchase of a new home.

Below is just an extract from last week’s tax tips email. You can register to receive future copies by following the link on the right (or below, if you’re reading this on a mobile device)

Reclaiming the SDLT supplement

Since 1 April 2016 a stamp duty land tax supplement has been payable on the purchase of second and subsequent residential properties costing more than £40,000. Generally, the supplement is not payable where the main residence is replaced, even if the purchaser ends up with more than one residential property after the purchases has completed. However, where the new main residence is purchased before the former main residence is sold, the supplement is payable initially. However, as long as the sale of the old main residence is completed within three years of the purchase of the new home, the supplement can be reclaimed.

So, what is the procedure for this and what time limits apply?

The repayment can be claimed either online or by post on form SDLT16, which can be completed online and printed off. The SDLT reference for the purchase is required. The claim must be made by the later of three months from the date of completion of the sale of the former residence or 12 months from the filing date of the SDLT return (which is 30 days from the completion of the purchase). It is important these deadlines are not missed or the opportunity to reclaim the supplement will be lost.