Stamp Duty Land Tax Refund
Have you paid stamp duty on residential or commercial property? It’s possible that you’ve overpaid and could be due an SDLT refund.
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 for your stamp duty refund, even for the most straightforward of property and land purchase transactions.
However, there are many who are just about to or have already completed their land and buildings transaction that are unaware of the stamp duty refund they may be entitled to. Reclaiming SDLT can be complicated for both individuals and businesses, because of the various legislation surrounding the process. Whether you’re purchasing a family home in Warwickshire or business dwellings in the West Midlands, navigating the SDLT refund landscape is best done with the advice and help of a professional. Based in the West Midlands, CapEx Associates can help you claim SDLT for personal and business properties in Warwickshire, Staffordshire, Shropshire, Herefordshire, and Worcestershire and across the UK.
Have I Overpaid SDLT?
Overpaid stamp duty is common for several reasons. The 2016 changes to stamp duty cover the majority of properties but very few property professionals are aware of these and the public even less so. Many solicitors, lawyers and agents aren’t tax specialists, and lack the knowledge to understand the complicated regulations. Even if you’ve used the stamp duty calculator, it doesn’t cover all the complex elements of the property tax system.
Currently, the stamp duty rate starts at 2% but rapidly increases the more expensive the purchase price of the property is. However, with a better understanding of SDLT regulations - including reliefs for first-time buyers or owners of one property - an advisor can find out exactly what you should pay and whether you have the option of reclaiming overpaid SDLT.
One reason that you may be entitled to a Stamp Duty Land Tax repayment is that there are also certain SDLT exemptions which may not have been applied during the buying process:
Reliefs for buying residential property
Multiple dwellings relief (MDR) offers significant savings for buyers. It’s possible to reclaim overpaid SDLT by identifying opportunities to claim MDR. There’s also relief available for first-time Buyers which you may not have been aware of.
3% Surcharge on Additional Dwellings
This complex area leads to confusion, as the surcharge may not apply to you. Our advisors can see if this can be reclaimed.
Corporate Property Purchases Over £500,000
HMRC has seen a spike of inquiries into corporate purchases of residential properties over £500,000 as questions around the rate of SDLT have risen. It’s possible that your business didn’t have to pay this and it might be eligible for a Stamp Duty Land Tax repayment.
Landowners & Developers
Not all SDLT charges are obvious when completing a land deal and there are some which you likely overpaid on. If you have overpaid stamp duty, our team can find this for you. The next step will then be to help you reclaim SDLT, and put your financials in order.
How To Reclaim Stamp Duty
Our team of SDLT advisors will investigate your purchases, as through no fault of your own, you may have overpaid and could claim a 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.
If you are about to complete a purchase of a property or already have within the last 12 months you could be able to claim a SDLT refund. Contact our team today.