Stamp Duty Land Tax (SDLT) is an additional expense that buyers must pay when purchasing property or land in the UK. If you have bought a property, you will likely have been required to pay this – and is one of the biggest additional costs for homebuyers. 

Whether buying outright or with a mortgage, Stamp Duty tax applies to both freehold and leasehold properties. However, you may be eligible to claim for a stamp duty rebate, or refund, through HMRC if you overpaid. Find out more if you are eligible for this through our guide, which will explain what Stamp Duty Rebate is, who is eligible for it and how the process works. 

What Is a Stamp Duty Rebate? 

Stamp Duty Land Tax (SDLT) is a tax required to be paid if you buy a property or piece of land in the UK (Scotland and Wales have their own similar tax schemes). How much you pay in stamp duty depends on factors like what type of buyer you are, the value of the property, when it was bought and what type of property. 

In contrast, a stamp duty rebate is a stamp duty land tax refund which you can apply for through HMRC. In some cases, people either miscalculate or overpay in stamp duty which means they are likely eligible for a stamp duty refund. For instance, first-time buyers are exempt from paying any stamp duty up to £425,000 – and if you possibly paid this, you will be entitled to a refund of thousands of pounds. 

Do I Qualify for a Stamp Duty Rebate? 

While there are strict outlines and rates given for stamp duty tax, you may be eligible for a stamp duty rebate. However, this depends on a variety of factors such as the type of property bought and when. Below, we have provided some examples of when you could qualify for a stamp duty refund: 

Second Home Stamp Duty Rebate 

You may be eligible for a stamp duty rebate if you bought your second home yet sold your main residence within three years of paying the additional 3% surcharge. In such instances, you will be eligible to reclaim this money paid through HMRC.

Stamp Duty for Properties with Annexes 

Perhaps you purchased your property before the rules changed regarding annexes in 2018 (where these were considered separate to the property) and may have been overcharged. As long as the main part of your property is valued higher than the annexed part, then it may be likely you were overcharged when you paid your initial tax. 

Stamp Duty Tax for Uninhabitable Properties 

In addition, you may have purchased an uninhabitable property, such as not fulfilling basic needs such as hygiene, and were surcharged. While this category is more complex regarding HMRC’s rules, you may be exempt from purchasing a property that is no longer habitable. 

How Do I Apply for a Stamp Duty Rebate? 

Whether you use a solicitor or complete the process yourself, the stamp duty refund procedure is straightforward and simple. It can be done online or alternatively you can print out the form and send it to HMRC yourself. You will be required to provide details such as: your name, address, details of the property and purchase alongside the amount of tax you paid and how much you are asking for back. 

You can even apply online today through companies, which can help ease this process and ensure you receive your money back for whichever reason you are applying for. 

How Long Does a Stamp Duty Rebate Take? 

You simply provide your basic details, property details (such as when it was bought, how much tax you paid etc.) and bank details. This process typically takes 15 days, and for any delays you could even be entitled to interest on the refund. 

When Should I Apply for a Stamp Duty Rebate? 

While rules can change, it is advised that you make your claim as quickly as possible. Typically, you should apply for a stamp duty refund within 12 months of the filing date for the original SDLT return. However, there are exemptions in certain circumstances where a claim can be made to HMRC up to 4 years later. 

Though there are a variety of strict rules, there are factors which many are not aware of when paying their Stamp Duty Land Tax. Find out more today with Stamp Duty Rebate to see whether you are eligible or not for a refund.