When you purchase a property in the UK, you are obliged to pay Stamp Duty Land Tax (SDLT). This tax applies to nearly all properties up and down the country including in Northern Ireland. However, there are some circumstances in which you may be able to get a Stamp Duty rebate. 

Stamp Duty can often be one of the most expensive parts of the whole process of buying the house as it is a percentage of the value of the house. It can sometimes be a struggle for many people to pay Stamp Duty and they need help from family or friends or short term borrowing in order to secure the house they want. 

However, due to recent case law, many people are now eligible for a Stamp Duty rebate on the money they paid for stamp duty. There are a few criteria but if you believe that you might be eligible for a Stamp Duty rebate then it is worth speaking to experts in the field who can help you get a rebate as soon as possible. 

It does not matter how long ago you purchased the property, as long as you can prove that you meet the eligibility criteria you will be able to apply for a Stamp Duty rebate from HMRC. 

This guide takes you through what a Stamp Duty rebate is, if you might be eligible and how quickly you could receive the compensation you deserve.

What Is a Stamp Duty Rebate?

If you have bought a property in the UK in the past then you would have paid Stamp Duty when you were purchasing the property. However, in some cases people are entitled to reclaim any stamp duty paid afterwards due to exemptions and rules that may apply. 

There are some cases where you could be eligible for a stamp duty refund or rebate where you overpaid on Stamp Duty, where it should not have been paid at all. 

For instance, if you sold your main residence within three years of buying your second property you will be entitled to a rebate on the 3% surcharge you paid initially. You could be eligible for a huge stamp duty rebate if, in the past 4 years, you purchased an investment property for £50k+, or a primary residence for £950k+.

How Long Does a Stamp Duty Rebate Take?

After you submit your application with the help of experts and you provide HMRC with all the relevant information then the claim can be processed within 15 days. 

If your claim is not settled within this time, you could be entitled to any interest due on the rebate, but you will not be able to file for compensation.

Am I Eligible for a Stamp Duty Rebate?

Many people are eligible for a Stamp Duty rebate due to recent case law. A Stamp Duty Rebate is when you have overpaid for your Stamp Duty when you should have paid less or not paid at all.

A Stamp Duty Rebate allows you to get back some, if not all, of the money that you spent on the tax in the first place.

There are a few reasons why you might be eligible for a stamp duty rebate, this includes:

Second Home Stamp Duty Rebate

You will be eligible for a stamp duty rebate on your second home surcharge if you sell your main residence within three years of paying the additional 3%.

Shared Ownership Stamp Duty Rebate for First-Time Buyers

Shared ownership properties purchased by first-time buyers will be exempt from stamp duty, providing the home’s value does not exceed £425,000.

Property Defects

Lastly, if the property had defects when you bought the property you might be eligible for a Stamp Duty rebate. You can now qualify for a stamp duty rebate should there have been any defects such as: faulty boiler or electrics, damp, structural issues, subsidence, asbestos, drainage issues, and others.

When and How Do I Apply for a Stamp Duty Rebate? 

You should apply for a stamp duty refund as quickly as possible, as delaying the process could affect how long it takes to receive your money as well as if you can receive it at all. We advise applying as early as possible due to the ongoing and changing rules set out by HMRC.

You can apply for a stamp duty rebate either individually online, through a solicitor or through an expert stamp duty rebate company. Whichever method, it is easy and usually fast. 

If applying yourself, you can apply online by filling out HMRC’s form, or alternatively, you can send your application by post. Whichever method you opt for, ensure that you have provided all the necessary information regarding yourself, your property and the original stamp duty land tax you paid. 

If you’re thinking of applying for a stamp duty rebate, or require further help, then you can get in contact today with us. Stamp Duty Rebate are nationwide experts helping you get the compensation you deserve for the stamp duty you originally paid.