I am going to buy a second property in Birmingham, which will either be extended or refurbished. It will not be a buyto-let, as I will put it up for sale as soon as it’s ready for market. Will I still have to pay the extra 3% stamp duty land tax, or can I claim it back after the sale?
Arthur Weller replies:
In November 2016, the government published a Guidance Note: 'Stamp duty land tax: Higher rates for purchases of additional residential properties'. In Q&A 4 on page 26, it states: 'I, an individual, am a property developer who purchases residential properties, refurbishes and then sells them. Will I be exempt from the higher rates of SDLT on any purchases that I make after 1 April 2016?'. The answer given is: 'No, there are no reliefs or exemptions from the higher rates for property developers.'