Stamp Duty Refund
With guidelines laid out over who has to pay stamp duty and the amount payable calculated on set amounts, it’s hard to see why there would be instances where a stamp duty refund would be applicable. As ever though things aren’t always that straightforward!
Below are a few reasons why buyers maybe eligible to claim a stamp duty refund:
Second home stamp duty refund
You are eligible for a stamp duty refund on your second home surcharge if you sell your main residence within three years of paying the additional 3%.Property sold on or after October 29, 2018, your request must be received by HMRC within 12 months of the main residence being sold, or within a year of the new residence’s stamp duty filing date, whichever is later.
Stamp duty land tax refund for houses with an annexe
This is a big reason for claiming a stamp duty refund, and many people are still unaware that they may have overpaid because of it. If you paid a stamp duty surcharge on a property with an annexe, granny flat, or another similar, smaller building on the grounds of your main home, you might be entitled to a refund.
Shared ownership stamp duty refund for first-time buyers
The chancellor stated in his 2018 Autumn budget that shared ownership properties purchased by first-time buyers will be exempt from stamp duty, providing the home’s value does not exceed £500,000. This relief can also be applied retrospectively, which means that if you bought a shared ownership property as a first-time buyer on or after November 22nd 2017, you may be eligible for a stamp duty refund.
Stamp duty refund on uninhabitable buildings
Under the Housing Act of 1967, to be regarded as habitable a property must have suitable facilities to meet basic needs, such as maintaining hygiene (i.e. a workable bathroom and toilet) and means to be able to cook for oneself (a kitchen).
SDLT refund on miscalculated properties
The last reason on is a rather simple one: you could have paid more stamp duty than you should have due to an inaccuracy with HMRC’s online stamp duty calculator.
The Revenue and Customs website has a tool to help work out how much you need to pay, but it emerged recently that the calculate wasn’t always accurate.
HMRC have since stated that the online tool is merely there to offer guidance, but many solicitors were actually using it to make their final calculations, which means that as many as one in six may have overpaid. There’s always a chance your solicitor could have taken their calculator’s. Those affected by the issue would potentially be those whose properties are deemed ‘mixed-use’ or homes with an annexe.
Should you feel that you may have been overcharged, contact us and we can evaluate whether or not you have a case for SDLT refund.
