There are several cases when stamp duty may not be payable. Nevertheless, the rules surrounding stamp duty exemptions are not set out in black and white so this can result in homebuyers overpaying. Read this guide to find out more about when stamp duty is not payable and whether you could be eligible for a stamp duty reclaim. 

 

What Is a Stamp Duty Rebate? 

A stamp duty rebate, or refund, means that HMRC owes you money for the original tax you paid on your property. Stamp duty, formally known as Stamp Duty Land Tax (SDLT) is a tax payable on properties or land bought in Northern Ireland or England. However, people sometimes overpay in SDLT which means they qualify for a stamp duty rebate or refund. 

You can receive a rebate by getting in contact with HMRC by applying online and filling out a form or via post. Some people, meanwhile, use solicitors to help them through this process. Another increasingly popular method to get a stamp duty rebate is through online companies, like Stamp Duty Rebate which can assure that you receive the money you deserve. This process is straightforward and can help you determine whether you are eligible or not for a stamp duty refund. 

 

When Is Stamp Duty Payable? 

As briefly explained, stamp duty is payable primarily on the current threshold of £250,000 as well as certain types of properties and buyers. Whether you are buying the property outright or through a mortgage stamp duty is still required. You typically have 14 days after you complete the purchase of a property to file a return to HMRC and pay the required stamp duty tax. This can be done by the buyer, or through a solicitor or conveyancer on your behalf. 

 

Can You Avoid Paying Stamp Duty?

The simple answer is: no, you cannot avoid stamp duty if you are required to pay it. Avoiding paying stamp duty can lead to serious legal consequences. On the other hand, there are some loopholes and exemptions that you may not know or be aware of due to the strict outlines HMRC sets out regarding stamp duty tax. We have set out below some examples of when stamp duty is not payable, or rather, where you may be exempt from paying it. 

 

If I Buy a Second Home Am I Exempt From Stamp Duty Tax? 

If you buy a second home and keep your other property, then you will be required to pay stamp duty tax and a surcharge of 3%. However, if you sell your first property within three years, you may be eligible for a stamp duty rebate. 

 

What If I Bought an Uninhabitable Property? 

There are several factors which determine whether a property is uninhabitable or not. However, examples of uninhabitable can include ones which do not fulfil basic hygiene, such as running water. If you have bought a property which is no longer inhabitable, then you can get in contact to find out how much HMRC owes you. 

 

Do I Pay Stamp Duty as a First-Time Buyer? 

First-time buyers are exempt from paying stamp duty tax on purchases up to £425,000 – tax is not payable on the first £425,000 and only 5% is spent on the rest of the up to the value of £625,000. 

 

Is Stamp Duty Payable If I’ve Inherited a Property? 

Another example of when stamp duty is not payable is when someone has inherited a property through a will. However, be aware that if you have inherited a property and you do not own any other properties, you will not classify as a first-time buyer.  

 

How Do I Check If I Must Pay Stamp Duty? 

By now, you will be aware that you can check if you must pay stamp duty tax through HMRC or other methods. A great option to check whether you are owed thousands of pounds is through us here at Stamp Duty Rebate. To find out if you are eligible to claim back your stamp duty, get in touch and we can help you receive the money you deserve.