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STAMP DUTY TAX (SDLT)

Stamp Duty Tax - Apply For SDLT Refund - Click.

Stamp Duty Tax is a form of tax that is charged when you purchase any property in the UK which costs more than £500,000. The rate at which the tax is charged is dependent on how much over the £500,000 threshold the property costs. It is important to note that this tax applies to both freehold and leasehold properties whether you pay outright or through a mortgage. 

It is also helpful to note that any second home you purchase over the value of £40,000 will be charged at a revised rate of 3%.

One thing to be aware of is if you buy a new main residence but there is a delay in selling your old home you may have to pay Stamp Duty Tax as if you are the owner of two properties. Despite this, however, if you sell your old home within 3 years of moving into your new property you can claim a refund on the extra amount of tax you paid.

Can You Reclaim Stamp Duty?

If you have purchased a property recently, there’s a possibility you might have been wrongly charged a higher rate of Stamp Duty (SDLT). If you think you have been overcharged, you can make a claim from HMRC. The OCC platform can assist clients through the SDLT repayment process.

First Time Purchaser - Could You Have Overpaid On Stamp Duty?

People who have bought a second property, those who’ve bought a property with an annexe and someone who has bought property with mixed residential and non-residential use could be eligible for rebates on their Stamp Duty tax.

Stamp Duty land tax (SDLT) needs to be factored in during conveyancing – and it can feel like a slap in the face on top of all the other hidden costs in your property purchase.

Any residential property worth over £125,000 (or £40,000 for second homes) attracts a Stamp Duty charge that you have to pay to HMRC. Stamp Duty is calculated as a percentage of the price of the property, and the percentage goes up according to the price band.

Stamp Duty is higher for second homes and lower for first-time buyers and those who buy a mixed-use property. There are some circumstances where you might have been wrongly charged a higher rate of Stamp Duty. If you think you have been overcharged, you can make a claim from HMRC.

 

Can First-Time Buyers Get SD Relief?

Since 22 November 2017 Parliament has provided Stamp Duty relief to first-time buyers of wholly owned and shared ownership properties worth no more than £500,000.

What a lot of first-time buyers don’t realize is that they can retrospectively claim that Stamp Duty tax relief, if they bought their shared property on or after 22 November 2017.

Can I Claim Back SD On A Second Home?

It’s not unusual for people to be hit by a higher Stamp Duty when they are buying a new home. If you haven’t sold your previous main residence beforehand, the new property is classed as a second home, which carries a higher rate of SDLT.

This can happen for various reasons: often if there is a delay due to a buyer pulling out or difficulty in selling a matrimonial home in the right time frame.

But there’s good news: if you sell your previous main residence within 3 years of paying the higher rate of Stamp Duty, you can claim money back from the HMRC.

Can I Get A SD Refund On An Annexe?

You may have been charged extra Stamp Duty on a property containing an annex or granny flat when you bought your property. Many buyers are not aware that the rate of Stamp Duty for these multi-dwelling properties is reduced, thanks to an allowance called Multi Dwelling Relief, and can in some instances end up being overcharged.

Mixed-Use Property SD Refunds.

If the residential property you bought has an element of commercial or non-residential use then you pay much lower rates of Stamp Duty. If you have overpaid Stamp Duty you can amend your SDLT return and make a claim to the lower rates of SDLT.

Appealing SDLT.

If you think you might have been overcharged Stamp Duty, or that you could be entitled to a retrospective Stamp Duty relief, you can appeal to HMRC and make a claim for a rebate.

You appeal online by using HMRC’s calculator to work out the rates of Stamp Duty and then writing to HMRC to claim for the amount you think you have overpaid.

Is There A Time Limit On Claiming?

There is a time limit on claims. Depending on the nature of your claim, you may have to make the claim within 12 months and 14 days of the purchase of your property or in some cases 4 years. The refund rules are complicated but if you miss the deadline for making a claim you may still be able to claim against your conveyancer.