Stamp duty land tax (SDLT) is a tax paid to HM Revenue and Customs (HMRC) when purchasing a property in the United Kingdom. This tax is calculated based on the property’s value and is payable by the buyer within 14 days of the purchase date. However, if the property is uninhabitable or not fit for human habitation, the buyer may be eligible for a stamp duty refund. In this post we will outline the process for obtaining a stamp duty refund on an uninhabitable property, and whether you are eligible.

 

What Is An Uninhabitable Property?

An uninhabitable property is one that is not fit for human habitation due to its poor condition or lack of basic amenities. The UK government defines an uninhabitable property as one that is not suitable to use as a dwelling or is in such poor state of repair that it is not possible to occupy it as a dwelling.

 

How Can I Claim A Stamp Duty Refund On An Uninhabitable Property?

If you have purchased an uninhabitable property, you may be entitled to a stamp duty refund. To claim the refund, you will need to provide evidence to HMRC that the property is uninhabitable. This evidence can take various forms, including a survey report or a letter from a professional stating that the property is not fit for habitation. It is important to note that a general inspection report or valuation report will not be considered sufficient evidence to claim a refund.

To start the process of obtaining a stamp duty refund, you will need to complete the SDLT refund form. This form is available on the HMRC website and must be completed within 12 months of the transaction data. The form requires you to provide details about the property, the purchase price, and the reason for the refund claim. 

When completing the form, it is important to provide accurate information, as any incorrect information or misleading information could result in a delay or rejection of the refund claim. You should also attach any supporting documentation, such as a survey report or a letter from a professional to provide evidence that the property is uninhabitable.

Once you have completed the form and submitted it to HMRC along with the supporting documentation, HMRC will then review your claim and may contact you if they require any further documentation. It is important to note that the refund process can take several weeks depending on the complexity of the claim and the workload of the HMRC.

 

What Happens If My Stamp Duty Refund Claim Is Successful?

If your claim is successful, HMRC will refund the stamp duty paid on the property. The amount of the refund will depend on the purchase price of the property and the rate of stamp duty applicable at the time of purchase. It is important to note that the refund will not include any interest or penalties that may have been charged on the original stamp duty payment.

 

Will I Always Get A Stamp Duty Refund If My Property Is Uninhabitable?

The short answer is no – in some cases it may not be possible to claim a stamp duty refund on an uninhabitable property. For example, if you knew about the property’s condition before purchasing it, you may not be eligible for a refund. Similarly, if you have already started repairing or renovating the property, you may not be able to claim a refund. 

It is important to seek professional advice if you are unsure whether you are eligible for a stamp duty refund. A solicitor or a conveyancer can provide guidance on the legal requirements and procedures involved in claiming a refund, and can also help you gather the necessary evidence and documentation to support your claim. If you think you are eligible for a stamp duty refund, don’t hesitate to contact us today!