Stamp Duty Land Tax: Armed Forces
The question
To ask the Chancellor of the Exchequer, if she will issue updated HMRC guidance on the definition of main residence for SDLT purposes for serving personnel living in Service Family Accommodation while retaining or purchasing a home elsewhere.
Answered by Dan Tomlinson
HMRC has published guidance on the definition of 'main residence' for Stamp Duty Land Tax (SDLT) purposes which is available at: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09812. This guidance applies to all purchasers, including serving armed forces personnel living in Service Family Accommodation.
The guidance explains that a property can only be considered a replacement of a main residence if the previous home was both owned and occupied by the purchaser (or their spouse/civil partner) as their main residence. Where a purchaser previously lived in accommodation which they (or their spouse or civil partner) did not own – such as Service Family Accommodation – then moving out of this accommodation does not count as replacing their main residence for SDLT purposes. Determining a 'main residence' involves assessing all relevant facts and circumstances, including the purchaser’s intention at the time of acquisition.
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