Reclaim Stamp Duty
Residential SDLT
Reclaim Stamp Duty and Land Tax
Why would you overpay Stamp Duty on your residential property?
Home-buyers sometimes overpay stamp duty because their conveyancers either don’t have the information they need to decide that a stamp duty relief applies, or they wrongly decide that a relief cannot be claimed. Conveyancers, on the whole, take a conservative view - many prefer not to make it if there is any doubt, so that they do not risk coming into conflict with HMRC.
There is a good range of stamp duty reliefs, but the main types are:
Second homes
Stamp obligation is higher for private properties, yet the principles are unpredictable to the point that numerous conveyancers and counselors neglect to comprehend them appropriately. Some feel that the 3% extra rates are payable when they are definitely not. In different examples, they neglect to factor in various abodes alleviation, which can considerably bring down the general stamp obligation charge. It is consistently worth checking the situation on the off chance that stamp obligation was overpaid and a discount guarantee is accessible.
Mixed use properties
The individuals who purchase a mixed use property – for example both residential and non-residential – can qualify to pay lower levels of stamp , but the meaning of what is a mixed use property is now a matter of discussion with HMRC. There are a several cases at presently before the tax tribunal waiting for a more clear definition. For anyone who believes their property qualifies as mixed-use, then an SDLT repayment claim should be considered.
Multiple dwellings relief
Multiple dwellings relief is worth considering for purchasers who purchase a property containing more than one independent unit, for example, at least one extensions inside the house – or independent accommodation in outbuildings on the property.
How can buyers find out if they’re eligible to reclaim stamp duty?
Buyers should check the details of a purchase and think about whether as a stamp duty reclaim or relief applies. As a rule the relief claim must be made to HMRC inside a year and within 14 days of completing the purchase.
When stamp duty has been overpaid because the conveyancer neglected to claim the relief, it is possible to make an amendment to the SDLT return and make a reclaim Stamp Duty to reduce the level of SDLT paid.
HMRC’s own SDLT calculators, on their .gov websites, are not tailored to take account of all the variables which may affect the amount of SDLT due on a transaction.
In-fact, in 2018 HMRC were forced to clarify to a national newspaper reporting on these facts "that the calculators are intended merely as a guide".
All this means that mistakes are common –
As many as 20% SDLT returns may be incorrectly completed, leading to millions of pounds in overpaid SDLT to HMRC every year. This can be because of missed reliefs based on the circumstances of the buyer, misclassification of the property being bought or any one of the more than thirty other exemptions in the legislation being missed by the solicitor when completing the SDLT return.
Free Quotation
If you are interested in refunds of SDLT Stamp Duty and Land Tax, Property incorporation or Research and Development Relief, then please enquire today with one of OUR experts.
We operate on a free consultation basis.
If a claim exists, we will handle it for you at an agreed fixed fee.
