If you believe that you have overpaid Stamp Duty, there are options available for you to make a claim either independently or through an agent. The process generally should take around 15 days if you submit all the required documentation online or by post.
However, it is important to note that delays with HMRC can result in an extended timeframe of up to 6 months for the resolution of your claim. It is advisable to ensure that you provide all the necessary documents and follow the appropriate procedures to expedite the process and increase the likelihood of a prompt resolution.
Many homeowners tend to overpay the stamp duty on their homes in recent years; it has been the case with many people. Hence, if you are amongst the homeowners who have overpaid Stamp Duty and are entitled to a refund, the procedure of obtaining that refund has several steps to follow.
If one were to initiate a claim against their conveyancer or estate agent, it would typically involve commencing professional negligence court proceedings against the solicitor who handled the property purchase and facilitated the payment of stamp duty to HMRC on the client’s behalf.
Such legal actions are intended to address any alleged negligent actions or omissions by the solicitor, aiming to seek appropriate remedies for any resulting losses or damages incurred by the client.
These proceedings would entail following the required legal processes, presenting evidence and arguments to substantiate the claim, and ultimately, pursuing a resolution through the court system.
1. Check if you are eligible
First off, you must check if you are indeed eligible for a Stamp Duty Land Tax (SDLT) refund! This is where both the homeowner(s) and the agency they apply for the refund through have control over.
In simple terms, the more information you can tell your agency about the property up front the sooner and more precisely they can provide you with an answer as to whether an SDLT refund is owed, and if so, how much it is likely to be. The details may include:
- When was the property acquired?
- Amount paid
- How was it purchased?
- Comprehensive specifics of the property itself
One of the eligibility criteria for an SDLT refund involves the property being your main residence. Additionally, selling your previous main residence within a specific timeframe is crucial to qualify for a refund.
Most advisers would get back to you with an answer within 48 hours. However, you must submit all information correctly to ensure a prompt and accurate response.
2. A written report
If a refund is truly due, your adviser will provide a written report describing to HMRC why exactly a refund is necessary, what errors were made that resulted in the unpaid Stamp Duty, and what revisions need to be made to the SDLT return that was initially filed by your solicitor if you chose to employ their services in Under normal circumstances, this procedure should take no more than 72 hours.
3. Wait for a response from HMRC
Once the report is sent to the HMRC, you must await their reply. This can take anywhere from 2-3 weeks to more than 6 months, depending on a variety of circumstances such as:
- The time of year
- The status of the property market
- The kind of property
- The complexity of the transaction
- Location of the property
Do note, that at times, HMRC might be overstretched. As a result, the response may be further delayed. The maximum delay reported so far has been a waiting period of 7 months. However, an ideal adviser will usually guarantee you three things:
- They will deal with the matter by themselves
- They will regularly contact HMRC for updates
- No fees need to be paid until the refund money comes in
Who is liable to pay SDLT?
Stamp Duty Land Tax is charged to buyers for residential property purchases and the sale of property that has commercial purposes. The buyer is responsible for paying the SDLT governed by HSMRC. It is crucial for buyers to understand their obligation to pay stamp duty, including the rates and potential surcharges, to avoid the risk of overpayment or the consequences of not filing a return and paying within the designated timeframe. 15 June 2020.
What is stamp duty land tax payable on?
Stamp Duty Land Tax (SDLT) applies to land purchases as a percentage of the purchase price. Different rates apply depending on property types and buyer characteristics. The standard stamp duty payment varies, with specific rates tailored to first-time buyers, residential properties, and non-residential or mixed-use properties. Additionally, a stamp duty surcharge is applicable in certain scenarios, such as purchasing second homes, buy-to-lets, or multiple properties, imposing additional charges on top of the standard payment.
How quickly do you get stamp duty back?
Tell me about the duration of the stamping refund? Provided that HMRC has all required documentation your claim will go forward within 15 days. Upon the settlement of the dispute you are entitled to interest but cannot file for compensation.
Conclusion
It may sound vague as the timeframe sounds too long and exhausting. However, if you are eligible for an SDLT refund, then it will be a welcome bonus to have thousands of pounds in return.
Frequently Asked Questions – FAQs on SDLT Refund
How do I know if I have overpaid Stamp Duty Land Tax?
If you suspect that you have overpaid SDLT, you can review your property transaction documents or seek professional advice to confirm.
What are the options available for making a SDLT refund claim?
You can choose to make a claim independently or through an authorised agent like us to assist you in the process.
What is the expected timeline for processing a SDLT refund claim?
Generally, the process should take around 15 days if you submit all the required documentation online or by post.
What documents are typically required to support a Stamp Duty refund claim?
Required documents may include property transaction records, proof of overpayment, identification documents, and any other relevant paperwork.
Can I submit my SDLT refund claim online?
Yes, you can typically submit your claim online through the appropriate government or tax authority website.
Are there any fees associated with making a Stamp Duty refund claim?
It’s important to check with the relevant authority or agent regarding any potential fees or charges associated with the claim process.
What should I do if my SDLT refund Application is rejected?
If your claim is rejected, you may have the option to appeal the decision or seek further assistance from a professional advisor.
Can I seek professional assistance for my SDLT Refund?
Yes, you can engage the services of an authorized agent or professional advisor to help you navigate the process and ensure all necessary documentation is in order.
Is there a time limit for making a SDLT claim?
The time limit for making a claim may vary by jurisdiction, so it’s important to check the specific requirements in your area.
Where can I find more information about Stamp Duty refund claims?
You can find more detailed information about Stamp Duty refund claims on the official government or tax authority website, or by consulting with a professional advisor.
