STAMP DUTY LAND TAX REFUND PROCESS

Everyone must pay Stamp Duty Land Tax (SDLT) on property transactions or non-residential land in England and Northern Ireland. The rules on SDLT have changed massively in the last few years, so it’s vital to seek professional advice when going through the stamp duty refund process, for your stamp duty refund, even for the most straightforward of property and land purchase transactions.

Have You Overpaid SDLT?

If you believe you have overpaid on stamp duty, it’s advisable to consult with a legal professional or a tax advisor who specialises in stamp duty. We can help you through the SDLT rebate process and ensure that your claim is as strong as it can be before submission giving you the best chances at making a successful claim.

SDLT REFUNDS

If you have already completed your land and buildings transaction, you may be entitled to a Stamp Duty Land Tax Refund. The Stamp Duty Refund process can be complicated for both individuals and businesses, because of the various legislation surrounding the process. We are here to help you through this and to help you understand the laws and regulations in place.

SDLT RELIEF

The most popular form of Stamp Duty Land Tax relief is the SDLT first time buyer relief, which was introduced in 2017. The SDLT relief reduces the amount of tax paid on the property and it applies to residential property purchases after 22 November 2017 with a value of £500,000 or less. You could be entitled to make an SDLT first time buyer claim today, get in touch and learn more about the SDLT rebate process. 

SDLT EXEMPTIONS

Stamp Duty Land Tax (SDLT) is charged on property transactions in the UK when their value is above a set threshold. Depending on the nature of these transactions, there are some cases when the buyer will qualify for SDLT relief or Stamp Duty exemptions. To find out if you are eligible for SDLT exemption get in touch with us today and we will help you through the stamp duty refund process.

Why Are you Overpaying Stamp duty land tax?

Overpaid stamp duty land tax is common for several reasons. The 2016 changes to stamp duty cover the majority of properties but very few professionals are aware of these and the public even less so. There are also some serious shortcomings in the HMRC SDLT tax calculator, which is designed to only serve as a ‘mere guide’. If you used the HMRC tax calculator during this period you may have overpaid tax and therefore be entitled to an SDLT refund.

Our SDLT Calculator can help you to make sure that you are correctly calculating the amount of stamp duty land tax you are supposed to pay and if you contact us today we can ensure that you are eligible and aren’t missing out on any exemptions that you could be entitled to.

How to Reclaim Stamp Duty Land Tax

Our team of SDLT advisors will investigate your purchases, as through no fault of your own, you may have overpaid and could claim an SDLT refund. There are several tax relief and exemptions available as well as the simple fact that the property itself could have been misclassified.

If you are in fact due a refund, we will then go through the process of reclaiming overpaid SDLT with HMRC. All the advice given is from a qualified Chartered Tax Advisor, so you have peace of mind that this is legitimately being inspected and your SDLT repayment is in safe hands.

Our fee then simply becomes payable from the amount of Stamp Duty Land Tax repayment that we claim back on your behalf.

There are multiple pieces of information that we will ask for as they are needed when you come to claim your SDLT refund, these details are as follows:

  • Your name and address
  • Information on the property you purchased and are making the claim for
  • Date of purchase
  • Reference number
  • Address of property
  • Name of buyer
  • Amount of tax paid
  • And, how much you are requesting for the repayment.
Man explains SDLT Refunds to client

CLAIM YOUR OVERPAID SDLT

If you completed a property purchase within the last 4 years you could be able to claim an SDLT refund.

At CapEx Tax our specialists are here to help you through the SDLT refund process and ensure that your claim is completed as smoothly as possible and without hassle to allow you peace of mind throughout the process. 

Contact us today for more information and to discuss the possibility of a claim further.

SDLT Tax Refund process faqS

Stamp Duty Land Tax (SDLT) is a fee buyers need to pay whenever they buy land or property over a certain price threshold in England and Northern Ireland. The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land/properties. Any purchases below these figures won’t be subject to Stamp Duty Land Tax.

SDLT is calculated differently for residential and non-residential properties. For residential properties (e.g. house or flat), Stamp Duty Land Tax is typically paid on increasing portions of the property price at the time of purchase. The amount payable depends on when the property was bought and how much was paid for it. 

The above also applies to non-residential & mixed land and properties. Stamp Duty Land Tax is paid on increasing portions of the property price when this is £150,000 or higher.

SDLT is payable whenever the price thresholds for the following are met or exceeded, for example:

  • Freehold property purchases
  • New or existing leasehold purchases
  • Property purchases through Shared Ownership Schemes
  • Property or land transfers in exchange for payment

 

SDLT returns must be filed with the HMRC within 14 days after the completion of purchase.

In certain circumstances, buyers may be exempt from paying SDLT. Instances include first time buyers, freehold properties costing less than £40,000, inherited properties and more. Find out who can qualify for SDLT exemptions.

Yes, as part of the SDLT refund process claims should be made within 12 months of the original filing date of the SDLT return (i.e. 14 days after completion of the original purchase). However, in certain cases, an SDLT refund claim can be made up to 4 years post-sale.

An SDLT refund is usually processed within a month or two, although this can sometimes be longer due to HMRC checks. If the HMRC open an investigation after issuing the refund and find that in fact you were not eligible or there was incorrect information provided, they will issue a closure notice requiring you to repay the money.

In most cases of claiming stamp duty back, it usually takes around twelve months before the time you have left to claim back stamp duty expires.

If you have sold your previous main residence within three years of buying your new property, then you are eligible to claim, circumstances apply. If you are unsure, contact us for more advice and guidance specific to your circumstances.

Our Testimonials

“Fourth year of claiming and every year it gets 'more painless' and smooth with less disruption to the business.”

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We document the latest updates on R&D, stamp duty land tax, embedded capital allowances and business grants.

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.

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