Our extensive knowledge and experience in Stamp Duty Land Tax have positioned us as industry specialists. Property professionals frequently seek our opinions in this field, acknowledging our expertise.

Furthermore, our presence in both specialist and mainstream media platforms enables us to address various aspects of Stamp Duty and related topics.

We are committed to staying up-to-date with the latest developments and regulations, allowing us to provide informed insights and perspectives. As trusted authorities in this area, we strive to contribute valuable information to both professionals and the public regarding Stamp Duty Land Tax matters.

Our SDLT services & Specialities

• Claim back additional 3% stamp duty surcharge paid to HMRC
• Multiple Dwellings Relief (MDR) – Written Tax Consultation
• Reducing SDLT for property developers and builders
• Transfer of property on liquidation of companies
• Advising non-resident individuals and companies
• SDLT on ‘mixed use’ properties
• SDLT on leases
• Transfers Involving divorce or dissolution of a civil partnership
• Dealing with HMRC enquiries
• SDLT Group Relief Claim
• SDLT Restructuring
• Staircasing SDLTs
• SDLT on Uninhabitable properties
• SDLT on Derelict properties

Have you overpaid Stamp Duty Land Tax? Multiple Dwelling Relief To Reduce Stamp Duty Land Tax

Residential Property SDLT Experts

There can be multiple factors leading to an overpayment of Stamp Duty Land Tax on your property. One possible reason is if your home includes additional features like an annexe or extra land beyond the typical gardens.

Another reason could be the presence of a commercial component within the property. In such cases, the Stamp Duty amount may have been miscalculated, resulting in an overpayment.

It is advisable to consult with a professional who can assess your situation and determine if you are eligible for a refund or a reassessment of the Stamp Duty paid. Seeking expert advice will help you understand any potential options available to rectify the overpayment.

Additionally, there is potential for reclaiming paid stamp duty when there is an overpayment, especially in cases involving the transfer of land and buildings within a group of companies.

As the Stamp Duty and Land Tax on property rules are complex, many individuals end up overpaying the tax. The department has refunded millions of pounds of overpaid stamp duty amount to landowners over the years.

With the laws changing every few years, there is a fair chance that you have overpaid the SDLT and could be eligible for a refund. Although many individuals and businesses, particularly the latter, seek the services of reputed legal conveyancers or solicitors to work out tax and refund amounts, the individuals and companies have to pay the tax.

SDLT For Property Investors & Companies

While property investment can be a lucrative venture, it is essential to seek appropriate property tax advice to navigate potential pitfalls.

During a property purchase, paying Stamp Duty Land Tax (SDLT) involves submitting a return to HMRC and transferring funds within 14 days of the completion of the property purchase. A conveyancer, agent, or solicitor can handle the tax return as part of the property purchase process.

Without proper guidance, investors may find themselves in a minefield of financial challenges. A faulty Stamp Duty Land Tax Calculator and a widespread lack of understanding regarding the ‘surcharge’ on additional properties contribute to investors paying more taxes than necessary.

Consequently, their investments under-perform due to excessive tax burdens. Seeking expert advice can help investors optimize their tax strategies, ensuring they maximize their returns and avoid unnecessary financial setbacks.

As an investor, it is easy to overlook stamp duty tax or pay an exorbitant higher amount than legally required. Suppose you are an investor – an individual or a business – buying an additional property (that doesn’t replace the primary property) or getting a ‘buy-to-let’ residential property. In that case, you could be paying a higher SDLT or higher surcharge.

With tax rules undergoing a massive re-haul in recent years, it is possible that many businesses and individuals do not have a complete understanding of the tax rules. Owing to this, they might end up overpaying their due tax amounts.

Property Developer SDLT

The property developer is also subject to certain legal obligations that they are required to fulfil. Planning permission is generally given to developers on a pre-condition that the developer would also develop certain basic amenities for the community. Some examples of these amenities include schools, parks and more.

Once the said obligation is completed, the property is transferred to the authorities to run. Here, the developer could end up paying two successive SDLT charges to the tax authorities – once when the land is bought from the original landowner and next when the developed building or school is handed over to the authorities. If such is the case, the developer can claim SDLT relief on the first sale. Additionally, eligibility for a stamp duty refund on the second home surcharge can be based on the sale of properties within a specific timeframe.

Property developers often find themselves paying more Stamp Duty than necessary due to missed exemptions and reliefs. Some of the commonly overlooked ones are related to the acquisition of flats with multiple dwellings relief or the purchase of land with existing planning permission.

Solicitors, who play a crucial role in the process, may unknowingly input incorrect or incomplete information into HMRC’s Stamp Duty Calculator.

Consequently, this can result in an inaccurate calculation of the Stamp Duty amount to be paid. To avoid such situations, it is essential for solicitors to stay updated on the available exemptions and reliefs specific to developer purchases of residential and commercial properties.

Property incorporation and R & D relief

The term property incorporation means converting a property interest from a single or partnership into a limited company. When you own a property through a limited company, you can enjoy several tax-saving benefits. You have to calculate the right amount of SDLT tax owed by you and accurately structure your portfolio so that you pay only the legally required amount.

Converting a main residence into a limited company can have significant tax implications, including potential Capital Gains Tax (CGT) liabilities and eligibility criteria for SDLT refunds.

The government introduced Research and Development Relief in the year 2000 to positively encourage and reward businesses that help scientific advancements and innovations across the country. Research and development are understood to happen when a company, with their projects, tries to advance the capabilities of technology or science. Although this is a highly beneficial and appreciated scheme launched by the then-government, it is not being claimed by at least a majority of companies, simply because they are either not aware of such a scheme or assume they won’t qualify for it.

Features to look for during purchase of a property

• Does the land you are purchasing come with the permission to construct and develop residential units?
• Are you buying an office building (with development rights) that can be converted into residential units or housing?
• Are you purchasing residential property along with commercial property or mixed-use land?
• Are you eligible for a stamp duty refund when selling your previous main residence within a specific timeframe after purchasing a new property? Special cases may allow a refund if the old home couldn’t be sold within 3 years due to uncontrollable reasons.

Wrapping up

Calculating the Stamp Duty Land Tax is undoubtedly a tedious and time-consuming one. It is crucial to seek professional advice to avoid overpaying the stamp duty surcharge. The sheer number of times the tax laws have been tweaked and the complexity of the norms and calculation have ensured that SDL tax is one of the most complicated ones in the UK. That’s precisely why it is essential to seek the help of legal advisors and experienced solicitors who can guide you on paying only the required amount of tax and getting a refund on excess payment of SDLT.