SDLT Refund

Every year thousands of people overpay their Stamp Duty Land Tax on residential purchases, through miss-classification of their property or simple lack of awareness of the numerous exemptions and reliefs which exist in a labyrinthine tax system.

You could be entitled to a refund of up to 80% if you fit criteria.

SDLT Refund

Every year thousands of people overpay their Stamp Duty Land Tax on residential and commercial purchases, through miss-classification of their property or simple lack of awareness of the numerous exemptions and reliefs which exist in a labyrinthine tax system.

You could be entitled to a refund of up to 80% if you fit criteria.

WHAT IS STAMP DUTY LAND TAX?

Stamp Duty Land Tax is charged by applying a range of percentages to slices of the chargeable consideration for the transaction.

As a rule, if the land consists entirely of a residential property and the purchaser is an individual and the transaction is on or after 1st April 2016 then the percentages in the standard residential rate section are applied. If the purchaser is purchasing an additional dwelling, then 3% loading percentages apply.

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WHY DOES SDLT OVERPAYMENT OCCUR?

HMRC’s Stamp Duty Land Tax calculator is only supposed to be a guide figure, it currently does not consider some of the most basic of calculations, such as the purchase of mixed-use land, least of all when it comes to the high level of transactions that just are not clear-cut.

For many solicitors, mortgage advisors and individuals, HMRC’s calculator is the main tool used to calculate SDLT rates. Here lies the problem.

This unrealistic expectancy of solicitors to be both property experts and tax experts at the same time could continue to leave homeowners overpaying their Stamp Duty.

It’s no wonder why 1 in 4 calculations are currently done incorrectly.

WHAT COULD YOU RECOVER?

Amounts can vary dependent upon the property type and tax paid to HMRC. It is common for standard rates to be applied due to the calculation complexity, which often leads to an over-payment of tax.

In some cases, it is possible to achieve up to 80% reduction in Stamp duty costs.

ARE YOU ELIGIBLE FOR A SDLT REFUND?

YES

✓ Have you acquired any sites over the past four years ?

✓ Did the asset have in place residential planning or Permitted Development Rights at the point of completion?

✓ Does the consented scheme provide for access to communal facilities such as communal garden, gym, concierge etc? Communal or allocated parking and access roads do not count.

NO

✗ Where the developer has acquired the asset within a SPV, we are unable to help

WHAT TO BEAR IN MIND

These are retrospective applications for overpaid SDLT liabilities, not a mitigation scheme.
An application for a refund can be made up to FOUR years after completion.
For transactions completed within the last 12 months the refund can typically be processed within 6 – 8 weeks, whilst those of more than one year to four years can take up to 12 – 18 months to process.
There have been cases where a refund of up to 80% has been secured on behalf of the client, but this does depend on a number of variable factors starting with how much SDLT was paid in the first place.

Contact Compariqo to start applying for your SDLT refund:

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