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Main residence 3% surcharge.

We have one house - our main residence. We have decided to move and have found a house which I am buying with cash. We have put our present main residence up for sale, but we will complete the purchase of the second house before we are able to sell our original, first home. So in theory, we have 2 homes although the new home will become our main residence. Do we have to pay the 3% surcharge? If not, is there a time limit within which we must sell the original main residence? If that's the case and we do have to pay the 3%, do we get that 3% rebated if go on to sell the house within 18 months? And in this instance, how long will it take the cash back from HMRC? Regards, William.

Asked on Feb 29 2016, General in Kent | Report content

Answers (1)

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  • Assuming the purchase of the new residence will not complete before April 2016, yes you will pay the extra 3%. The details will not be confirmed until the budget later this month but based on the consultation document you will have 18 months to sell your old residence if you want to reclaim the extra tax. There may also be a window of a few days or weeks in which you will be able to account for the sale and purchase in one return to HMRC and thus not need to claim a rebate.

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    Answered on Mar 1 2016, Report content

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