When you are buying a property, there are various taxes and charges to consider. One of the most important is Stamp Duty Land Tax (SDLT). In this post, we will look at how you can claim an SDLT exemption

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How to Apply for Stamp Duty Exemption

When applying for a Stamp Duty Exemption, many factors can apply, such as the location and local jurisdiction in place: 

Determining eligibility and gathering the correct documentation should be the first course of action when looking to apply for a Stamp Duty Refund or Exemption. 

The usual documentation provided at this stage includes proof of identity, proof of eligibility and other necessary documents required by your tax authority. 

Once you have obtained the correct application form, provide all relevant information and ensure the form is filled out correctly. In terms of submitting your application, in most cases, a claim is submitted at the local tax office or government agency.

Once submitted, the relevant authority will go over and assess your application. Patience is key at this stage as busier times can equate to longer waiting times, and an expected timeframe may be provided by your local authority.

Claiming as a First-Time Buyer

In order to make a claim, the buyer must apply for a Stamp Duty Refund to HMRC within 30 days of completion.

Typically, your solicitor will complete this return and make the claim on the same day that you complete the purchase of your property

If you don’t have a solicitor or want to do this yourself then you can apply for a Stamp Duty Refund via the HMRC online form, when filling out the Stamp Duty Refund application you must enter Code 32 in the reliefs field on the form.

If you have already submitted your application, then you can make an amendment by including a note that you are claiming the SDLT exemption.

Stamp Duty Exempt Areas

There are multiple reasons for being exempt from SDLT, some of these you don’t have to fill out a form. 

Reasons can include; receiving property in a will, if you receive property through divorce or civil partnership dissolution, or if no payment is exchanged for property.

If your leasehold property purchase is less than 7 years long the cost is below the chargeable consideration rate which is currently £125,000 for residential properties.

If the lease is for more than 7 years you are exempt providing the premium is less than £40,000 and its annual rent is below £1000.

Get Help With Your Claim

When you apply for a stamp duty refund it can be confusing and difficult to deal with. The team at CapEx Tax are experts and are here to help you and will make sure you get your full entitlement of relief and exemptions.

We understand that gathering evidence and making a claim for stamp duty land tax refund or exemption can be complex and time-consuming, especially when the subject matter is new to you. 

This is why our tax specialists are well-versed in the updated tax laws and regulations, especially when it comes to tax exemptions, this can make the entire application submission process a lot easier.

We advise you to gather together the correct documentation in order to move forward with the tax authority in your application. We’re on top of all deadlines and timing procedures, missing submission deadlines can seriously hinder your chances of gaining an exemption and increase the length of the application process.

Claiming An SDLT Exemption FAQs

No, the government introduced first-time buyer’s relief for individuals moving into their first property, also this relief was introduced for people to actually live in the house and not rent it out to others.

Stamp Duty areas do exist throughout the country, this means there are certain areas of physical land that Stamp Duty is not payable on, areas may be exempt from Stamp Duty to entice people to move into that area.

If you’re curious you are residing in an exempt area and wish to contact us, our team at CapEx Tax will be happy to answer any of your queries.