STAMP DUTY LAND TAX REFUNDS
Stamp duty land tax refunds are a form of reimbursement provided to individuals or companies who have overpaid or paid SDLT in certain circumstances. SDLT is a tax imposed by the UK government on the purchase or transfer of land and property.
At Capex Tax, we understand that reclaiming stamp duty can be a complicated task, our specialists can help you understand all the key aspects of a stamp duty refund and how you can have a successful claim.
Am I Eligible For an SDLT Refund?
Many factors can make you eligible for a stamp duty refund, here are some examples of scenarios where you may be eligible:
- Mistaken Overpayment – If you believe you have overpaid SDLT due to an error in the tax calculation, missed exemptions or reliefs, or other factors, you may be eligible for a refund of the excess amount paid.
- First-Time Buyer Relief – First-time buyer in the UK? You may be eligible for a reduced SDLT rate or complete exemption on properties below a certain threshold. If you paid SDLT at the standard rate but qualified for first-time buyer relief, you might be eligible for a refund of the excess amount.
- Purchase Cancellations – If your property purchase fell through or was cancelled, and you had already paid SDLT, you could potentially claim a refund. This typically occurs when the transaction fails to complete due to various reasons, such as the seller withdrawing or the buyer being unable to proceed.
CapEx Tax Can Help You To Process Your Stamp Duty Refund
Here at CapEx Tax, we specialise in tax matters and grant applications, we have specific expertise and knowledge in SDLT regulations, exemptions, relief, and refund procedures.
We have extensive experience dealing with property transactions and associated tax implications. This experience can provide valuable insights into identifying potential refund opportunities, understanding eligibility requirements, and optimising refund claims.
SDLT regulations and refund procedures may change over time, but we make sure to stay up to date with the latest changes and requirements. This can help ensure that your refund claim adheres to the current guidelines, maximising the chances of a successful outcome.
WHO DO WE SERVE?
WHY WOULD I HAVE OVERPAID STAMP DUTY LAND TAX (SDLT) IN THE FIRST PLACE?
There are many different factors and scenarios that can come into play when it comes to overpaying on stamp duty, such as an understandable miscalculation.With stamp duty land tax rules being slightly complex, this tends to happen with some cases leading to a significant overpayment.
Another factor that comes into play, and something you should definitely be aware of is incomplete documentation or lack of legal advice, incomplete documentation during the process of the property transaction can lead to errors and mishaps when calculating the desired stamp duty amount.
Failure to Claim Exemptions, exemptions such as first-time buyer relief, will most likely qualify for reduced stamp duty rates. If you fail to claim certain exemptions then it may result in overpayment.
Also, taking your time and remaining patient with the stamp duty process is essential, as people can rush through the property purchasing process, due to rushed decisions and poor choices as a result of this, it will most likely lead to overpayment.
CapEx Tax specialists will ensure this will not happen to you, or your case. We are trained to make the correct decisions when they need to happen.
TYPES OF STAMP DUTY REFUNDS
With there being many different processes when it comes to stamp duty refunds, it’s always good to know the various types when you come to process your claim.
Cancelled or Rescinded transactions
If something has occurred that has heavily affected the property transaction process
or a change in the agreement, you would be in your right to request a cancellation of the SDLT transaction. In other cases, a court order may decide to cancel a transaction, for reasons such as fraud or if the transaction was entered into under duress.
Multiple Payments for the same transaction
There are certain cases where there could be multiple payments for the same SDLT transaction such as if the property ownership structure, if multiple parties have a share within the property then the SDLT will be split depending on the parties’ share size.
Change in Legislation or Rules
If there happens to be a change in any legislation or rules regarding SDLT after you have completed your case, the new rules will apply to your case from the point the new rules are integrated.
Reassessment of Property Value
Once you purchase a property, the value of the property is declared. If at a later date, the property is reassessed and you come to find out that the property has been overvalued, you may be able to claim a refund of the excess SDLT paid.
If you have purchased a property and it is later deemed uninhabitable, you will be eligible to apply to claim a stamp duty refund.
Here are some key features that could deem your property unhabitable.
- Mould or Asbestos
- Unsafe Electricals
- No Running Water
- Structural Damage
Mixed-use property is a type of real estate that combines multiple uses under a single building or development. Multiple-use properties include commercial and retail spaces.
The concept of mixed-use properties is to combine activities and functions under one roof to coexist and create an efficient environment.
Multiple dwellings relief is a provision in certain jurisdictions that can offer a refunded or reduced rate of stamp duty for multiple properties in a single transaction, this process is designed to encourage investment in housing developments, with the end goal to boost the construction of new housing and boost the surge in residential properties.
With the entry-level of student accommodation typically being around or below £125K, normally investors will pay no stamp duty. There are numerous types of student accommodation, and stamp duty will apply to the different types in different ways.
For properties that include an annex or A self-contained secondary dwelling can be offered a reduced or refunded rate on stamp duty. This is to encourage and increase additional living spaces on existing properties, which can then house family members or generate rental income.
If you have gained a property through the transfer of deeds or have gained a property via inheritance, we can help you to claim a refund on stamp duty.
It is important to check your eligibility criteria when it comes to a probate refund on stamp duty land tax.
While land and buildings are under development or construction, there are certain jurisdictions that allow for a stamp duty refund.
This can then help to promote and encourage investment in property development projects and to support the real estate industry by decreasing the upfront tax burden for those wishing to invest in property development.
In order to try and promote the sales of agricultural land and boost investment in farming and agricultural activities, refunded and reduced rates of stamp duty have been imposed and implemented. The definition of agricultural land may vary depending on your local regulations.
When purchasing houses in multiple occupations (HMOs), you may be entitled to multiple dwellings relief. This can be an attractive option for landlords and investors as they are likely to earn more rental income compared to a stand-alone home or accommodation.
GROUP RELIEF PROPERTIES
Group Relief Stamp Duty Land Tax Refunds are a provision that allows big companies and corporate entities to gain a reduction or exemption from stamp duty when a property is transferred.
Group relief exemption applies to companies that are in the same corporate group, the transfer of the properties between these companies must be for genuine commercial reasons.
HOW TO MAKE AN EASY SDLT REFUND CLAIM WITH CAPEX TAX:
1. Check your eligibility
Understand and research the circumstances under which an SDLT might be applicable, and seek professional guidance to determine if your situation qualifies for a refund.
2. Collect all the Relevant Documentation To Make Your Claim
Ensure you collect all the relevant documentation related to the property transaction and the capital expenditures you have made. Making sure you have all the correct documentation can make it a lot easier for you and the people involved working to get your refund over the line.
3. Receive Your Refund
After the processing review stage, it can take up to fifteen days to successfully receive your refund. If anything does not go as planned make sure you still have contact with the correct authorities to deal with any wrongdoings.
Usually, an SDLT refund can take a month or two to be processed, although could potentially take longer due to HMRC checks. If in your refund claim, HMRC find any incorrect information provided by you, or you were not in fact eligible, a closer notice will be issued to you requiring you to repay the money owed.
STAMP DUTY REFUND FAQs
Unless HMRC needs further time to process and review your refund application, the process should take up to fifteen days.
The documents needed for a successful refund can depend on what type of refund you are seeking.
Most cases include documents such as a copy of the original SDLT return, evidence of change in circumstance, and other supporting documents to help you in your case.
Buyers can claim a stamp duty refund, if they sell their main residence within three years of purchasing. This might apply in situations such as divorce proceedings and other circumstances that may prompt you to make you purchase another property before you sell your old one, for example, in some cases, a buyer may drop out in the middle of the transaction process, and the seller will not give up on their sale.
Changes have been announced for SDLT, but the changes will not take effect until 31st March 2025.
Stamp duty cannot be paid in instalments within the UK. If you are struggling to pay stamp duty please contact your local council.
It is possible to add stamp duty to your mortgage, but it is essential to know that this will incur interest over the duration of your mortgage term.
ANY QUESTIONS? CONTACT US
With over 25 years of experience, we have helped clients big and small to claim government money through funding, SDLT reclaims and relief.