Stamp Duty Land Tax (SDLT) refund opportunity.
Current Issues | Tax | 12th March 2019
Stamp duty rates have soared in recent years and it is now a significant cost. According to the property website rightmove, the average price of a semi-detached house in Westminster last year was £4,331,786. The SDLT payable on such a house comes to close to £450,000, or even over £550,000 if the property doesn’t meet the main residence rules and is therefore subject to the dreaded 3% SDLT surcharge.
But many buyers are paying more stamp duty than is required, either because the 3% surcharge doesn’t need to be applied (or can be reclaimed), or because of an often overlooked aspect in the details of the stamp duty rules.
Properties which have annexes, granny flats or other smaller dwellings on their grounds which could be used as a separate dwelling, can be treated as two separate dwellings for SDLT purposes. This means that the lower rate bands are used twice and this can result in a very worthwhile saving. Taking that £4.3m semi in Westminster, for example, the saving might be around £70,000. Furthermore, HMRC have also issued some guidelines on the circumstances when the additional 3% stamp duty surcharge does not need to be applied to these properties.
We have experience of over 150 successful claims so we know how to put the claim together and we have an excellent working relationship with the HM Revenue & Customs team which handles them.
There are strict time limits for making claims. If you might be affected please contact us without delay.
Specific advice should be obtained before taking action, or refraining from taking action, in relation to the above. If you would like advice or further information, please speak to your usual Shipleys contact.