Did I pay too much SDLT?

[thunderouslug]

Hoping someone here may be able to help as our past solictor was more than useless. In 2013 I bought my first property, a flat. In 2016 I inherited part of a house overseas, which I still own. In 2017 I sold my first flat and went into rented for a few months. I then purchased a house in early 2018 and the solicitor told me I had to pay the additional 3% rate as I already owned property abroad. Made sense. But looking into it now, did I not actually replace my main residence and as such did not have to pay the additional rate? Or is that only when you have a seamless transaction, i.e. not go into rented in between?

You still pay stamp duty if you own property abroad even if it's not your main residence.

As in Stamp duty from 3% as your bought a second home

From google

What if I own property abroad? You are liable for the 3% additional stamp duty even if the only other property you own is abroad. So, a holiday home in Tuscany or a timeshare in Florida will mean you pay the stamp duty for second homes rate, even if you are buying your first home in the UK

You didn’t sell the property you already owned part of so you would have been liable for higher rate SDLT

Presumably you lived in your flat as your main residence for more than 3 years?

If you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill.

The higher rates do not apply to the purchase of a property which is the replacement of a main residence, even if the taxpayer has additional residential properties.

A recent decision by the First-tier tax tribunal confirmed that there is no minimum period of residence that is needed to secure main residence relief – what matters is that there has been a period of residence as the only or main home.

You have replaced your main residence so due a refund

I just checked about the main residence thing and it's absolutely shocking to me that you can live in one home and earn income for a second but not pay the higher rate of stamp duty!!

Well if you purchased a new second property now the rules have changed and you would pay higher rate stamp duty, it's there as a deterrant for people to have second homes whether for themsleves as pleasure or through making money by renting out. However if you already owned more than one property before the rules changed in then yes you can sell and replace your main residence without having to pay the higher rate stamp duty, i'm not sure thats shocking to be honest.