Stamp Duty Rebate For Group Relief

Stamp Duty Land Tax (SDLT) is a tax paid on the purchase of a property or area of land in England and Northern Ireland that is over a certain price. Scotland also has the Land and Buildings Transaction Tax, and Wales the Land Transaction Tax which work similarly to SDLT. The amount buyers will pay on stamp duty is dependent on a number of factors including the cost of the property/land, the type of property, and whether they qualify for any reliefs or exemptions. One relief, for instance, could be group relief.

Find out how group relief works, whether you are eligible, and how to reclaim stamp duty land tax money from HMRC.

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How Does Stamp Duty Rebate Work?

Stamp duty rebate occurs when buyers have overpaid on the amount of stamp duty owed. By applying for a stamp duty rebate or refund, it allows buyers to get back some, if not all, of the money that was paid on SDLT in the first place. Factors such as being a first-time buyer, purchasing a second home, whether you’re a landlord, and more will all determine how much stamp duty is paid. Further reliefs and exemptions may also apply depending on your personal circumstances. It won’t always be evident whether or not you have overpaid on stamp duty, so if you are unsure it is best to speak with an expert or advisor who will assess your eligibility for reduced stamp duty and can help with your rebate application.

What Is Group Relief?

Stamp duty rebate for group relief is a policy that provides incentives for group companies to transfer properties within their group without incurring a heavy financial SDLT burden. Group relief refers to the special treatment provided by tax authorities that allow companies within a group structure to transfer assets at a reduced SDLT rate.

The concept recognises that companies within a group are, essentially, interrelated and that transactions between them should not attract additional tax liabilities. The group relief policy, therefore, enables properties to be transferred without extra costs, promoting flexibility and efficiency in corporate decision-making.

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When Can Group Relief For Stamp Duty Apply?

Group relief for stamp duty can be applied in a number of scenarios involving the transfer of properties within a group. Ranging from corporate restructuring to group share transactions, there are various situations where group relief may be applicable:

 

  • Corporate Restructuring – When companies undergo mergers, demergers, and internal reorganisations, properties may need to be transferred between group entities. Group relief allows these transfers to take place without attracting substantial SDLT liabilities.
  • Business Transfers – If a business is sold or transferred within a group, the properties associated with that business can be transferred alongside it, benefitting from group relief.
  • Intra-Group Financing – In cases where properties are transferred as part of financing arrangements within a group, group relief can help reduce the SDLT costs associated with such transfers.
  • Group Share Transactions – When shares in a company are transferred between group entities and the company owns the properties, group relief can be utilised to facilitate the transfer of those properties without incurring considerable SDLT.

Are There Any Restrictions On SDLT Group Relief?

While group relief for stamp duty offers significant advantages, there are certain restrictions and conditions that must be met to qualify for the relief. Such restrictions include:

 

  • Ownership and Control: The companies involved in the transaction much be connected in terms of ownership and control. This typically means one company holds at least 25% of the ordinary share capital or voting power in another, or both are under the control of a third company.
  • Non-Avoidance Provision: The transaction must not be carried out for the sole purpose of tax avoidance. It should have a genuine commercial or business purpose.
  • Continuing Trading Requirement: If the transfer involves a property used for trading purposes, it must continue to be used for trading within the group for at least 3 years after the transfer. Failure to comply may result in the recovery of the relief.
  • Qualifying Conditions: The specific conditions for claiming group relied on may vary on a case-by-case basis. It is important to consult tax professionals or refer to the relevant HMRC criteria to ensure you are eligible.
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Recent claims

How much can I expect to get back should my claim be valid and approved?

Every case is different. In some cases, we were able to arrange a rebate of up to 60% of the original SDLT paid. Some of the cases that we’ve successfully claimed refunds for:

Steven B Primary Residence
Rebate Received £9,337.00
Purchase price £1,100,000.00
Stamp Duty Paid £53,750.00
Gary H Primary Residence
Rebate Received £26,795.00
Purchase price £1,485,000.00
Stamp Duty Paid £89,750.00
Matt S Buy to Let
Rebate Received £8,817.35
Purchase price £274,000.00
Stamp Duty Paid £11,920.00
Ben G Primary Residence
Rebate Received £17,397.00
Purchase price £1,260,000.00
Stamp Duty Paid £69,750.00
Zev S Buy to Let
Rebate Received £13,044.95
Purchase price £410,000.00
Stamp Duty Paid £22,800.00
Ashkey P Buy to Let
Rebate Received £2,502.33
Purchase price £82,500.00
Stamp Duty Paid £2,475.00
Sophia L Primary Residence
Rebate Received £42,478.00
Purchase price £1,680,000.00
Stamp Duty Paid £115,350.00
Jonathan P Buy to Let
Rebate Received £2,340.51
Purchase price £77,500.00
Stamp Duty Paid £2,325.00
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Why Choose Stamp Duty Rebate?

At Stamp Duty Rebate, we have years of experience in the rebate business, ensuring all our clients receive the money they are entitled to. Not only do we provide a stress-free service, but our application process is straightforward for all. We have a dedicated team on hand to complete applications on your behalf and submit all necessary information to HMRC, saving you the hassle of doing so. Plus, after submitting the claim form, our experts will determine your eligibility, meaning you won’t have to go through the stamp duty rebate process just to be faced with an eligibility issue. 

Get in touch with us at Stamp Duty Rebate today to make a claim and find out whether you could be entitled to thousands of overpaid pounds.