Stamp Duty & Land Tax Relief
It’s estimated that 4/10 Stamp Duty Tax Relief (SDLT) Payments are calculated incorrectly.
SDLT is evolving and complex, with almost 50 exemptions, exceptions, and reliefs available, mistakes are often made – which is why specialist expertise is essential. Are you a first time buyer?, Have you purchased a second property? Have you purchased a property with an annexe? May be you have purchased a property with mixed residential and non-residential use?
Whether you are a residential buyer, a property investor, or a developer, you have potentially overpaid thousands of pounds in SDLT. Blue Commercial will ensure that you pay the correct amount of SDLT, first time, every time!
What is Stamp Duty and how does it work?
Stamp Duty Land Tax (SDLT) – usually referred to as stamp duty – is a tax imposed by the government on the purchase of land and properties. Different rates of tax are applied depending on the type of property and the purchase price of the property.
Any residential property worth over £125,000 (or £40,000 for second homes) attracts a Stamp Duty charge payable 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. It is often the case that you might have been incorrectly charged a higher rate of Stamp Duty, which is where we have the expertise to help!
When it comes to Stamp Duty related to the purchase of a commercial property, once again, different rates apply. The scale is simpler, with just 3 different rates between 0% and 5%.
Contact us to see if you are eligible for a Stamp Duty Refund.
How can you claim SDLT Relief?
SDLT Relief: First Time Buyers
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 realise is that they can retrospectively claim Stamp Duty tax relief, if they bought their shared property on or after 22 November 2017.
SDLT Relief: Second Home
It’s not unusual for people to be stung 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 an overpayment from the HMRC.
SDLT Relief: Annexes
You may have been charged extra Stamp Duty on a property containing an annexe 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 Multiple Dwellings Relief, and end up being overcharged.
SDLT Relief: Mixed-use
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.
Can You Appeal 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.
There is a time limit on when you can make a claim, though. 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…
Making an SDLT claim with Blue Commercial
In our experience, many people find the process of claiming back their Stamp Duty complex and time-consuming.
We will work with you to assess your eligibility for a stamp duty refund and then manage your claim on your behalf – from calculating how much you are owed, collating all the necessary information, filing your claim and corresponding with HMRC and arranging the Stamp Duty refund payment.
This is real life Monopoly – don’t leave it to a Chance card, when you can rely on Blue Commercial!
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