The housing market has understandably slowed down during lockdown, making it difficult for many to move home. This has caused a potential problem for people who are trying to replace their main home, as extra SDLT is due when the original home isn’t sold within three years of moving into a new one.
HMRC have now extended the three year limit though, to allow for any delays caused by the coronavirus. This is extremely welcome but care must still be taken to demonstrate to HMRC that the delay was purely coronavirus-related for those taking advantage of the extension.
Also, bear in mind that there is currently no similar extension for Capital Gains Tax (CGT). For CGT purposes, the original home must still be sold within nine months in order to get full relief. Coronavirus-related delays in selling could mean you may still have additional tax to pay.
Get in touch for further advice, email enquiries@cowgills.co.uk
Disclaimer
The information was correct at time of publishing but may now be out of date.
