We are a leading RICS regulated company helping eligible property owners achieve Stamp Duty Land Tax refunds.
The legislation governing Stamp Duty Land Tax (SDLT) is complicated and often misunderstood. As a result, you may have paid too much SDLT when you bought your property. Examples where this may have happened include:
- paying for chattels (contents) when SDLT should only be paid on land and buildings,
- not claiming Multiple Dwellings Relief when your property has a second independent dwelling such as a cottage or annex, and
- paying the residential rate of SDLT when your property could be classed as mixed use.
Chattels, not land and buildings
When you bought your property, it is likely that you paid SDLT on contents, known as chattels, such as curtains and blinds, carpets, light fittings, white goods and other moveable items both inside and outside your property. As a consequence, you could be due an SDLT refund of up to 15% of the amount you paid. Typically, on a country house costing £1,500,000, you may have overpaid around £14,000 in SDLT.
Multiple Dwellings Relief
Over recent years, the Government has made major changes to the Stamp Duty Land Tax (SDLT) system. If you have purchased a property within the last twelve months which contains a separate dwelling (annex), but you paid SDLT on the full purchase price, you may be entitled to a refund. Typically, on a house costing £500,000, you may have overpaid £10,000 in SDLT.
Residential and commercial properties have different rates for Stamp Duty Land Tax (SDLT) with “non-residential” rates being lower. As a result, Government legislation provides the opportunity for the biggest potential SDLT savings where a “Mixed-Use” property has been bought.
An example of a mixed-use property could be a farm house with garden and agricultural land (the non-residential element). If the property cost a total of £1.5 million, and SDLT had been paid at the full residential rate, you could be due a refund of over £29,000.
There is a limited time period within which a claim for repayment can be made, usually a maximum 12.5 months from the date you completed your purchase, so it is important that the process is started at the earliest opportunity.
To find out more about SDLT refunds, please call our dedicated line on 01285 707797 and we would be delighted to discuss the opportunity further.