SDLT Recovery Query

[Jazz1966]

Say my wife and I buy a house as a second house. We would pay SDLT at the current rate plus 3%.

If in a few years' time we sell the house and the house has gone up by a considerable amount such that we have to pay CGT.

On selling, is the full SDLT paid recoverable against our CGT bill?

Thanking you for your reply.

 

[DontAsk]

No.

 

[Jazz1966]

Or is the SDLT considered to be part of the purchase and included in the purchase cost?
As an example.
Property Purchase price = £200,000
SDLT = £5000 (made up figure)
(Ignoring all other costs)

Property sold for £300,000.

When calculating CGT, is the original property purchase price figure used £205,000 (£200,000 + £5000 SDLT) or just £200,000?

 

[Rawlinson Pryde]

The SDLT is an allowable cost so £205k in your example although real life from 1 October the actual answer is £7,500