Refund of higher rate SDLT - exceptional circumstances

[chaoticj]

Hi,

 

I bought a second property before selling my original so had to pay higher rate SDLT. This second property became my main residence some months later.

 

I was ready to sell the original property in March this year but couldn't because of the Covid-19 pandemic - no estate agents operating.

 

I wrote to HMRC in April requesting an extension to the 3 year time period in which to claim a refund and they wrote back in June with details of new legislation allowing refunds past the 3 year time period if exceptional circumstances had prevented sale of a property.

 

I sold the property 1 month outside of the 3 year time period and wrote to claim a refund under exceptional circumstances. The reason being the Covid-19 pandemic - could not get valuations or get the property listed until May.

 

I had found a buyer that could complete in 2 months which would have been 1 month before the end of the 3 year time period but after the 2 months they could not get finance due to more stringent lending restrictions caused by Covid-19. I also mentioned the effects of buyers being reluctant to view, redundancies, job uncertainty, delays in reports, searches etc.

 

If it wasn't for Covid-19 I would have had 6 months to sell the property which was more than enough to complete a sale under normal circumstances.

 

They have written to me saying that based on the information I provided they are not satisfied I was prevented from disposing of my previous main residence in the 3 years after I purchased my new main residence by exceptional circumstances that could not reasonably have been foreseen.

 

They will not provide a refund and as my request is outside of statutory time limits that the legislation allows there is no formal appeal or review process.

 

I think they are saying exceptional circumstances don't apply because the property was not already for sale. Is this right? How could I have foreseen a pandemic?

 

Spoke to them and apparently I could have put it up for sale in January for example. I did not mention in my letter to them but I also had personal extenuating circumstances in the months beforehand - my father was extremely ill and since passed away during lockdown.

 

They say I can lodge a complaint, setting out the circumstances again and anything in addition - is this likely to make much difference?

 

Many thanks in advance.

Edited November 16, 2020 by chaoticj