Stamp Duty Rebate For Developers

When it comes to buying a property in the UK, specifically England and Northern Ireland, buyers are often faced with an added charge of Stamp Duty Land Tax (SDLT). Property developers are no exception to this, meaning if you are planning to buy a residential property with the aim of refurbishing it, you may be charged SDLT on top of the property price. It is therefore well worth knowing how much stamp duty you may be charged and whether or not you could be eligible for tax relief.

Read on to discover how stamp duty works for property developers, the exemptions and reliefs available, and how to claim a stamp duty rebate.

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Expertise in Multiple Dwelling Relief

Developers involved in multi-unit projects often face complex stamp duty calculations. Our team understands the intricacies of multiple dwelling relief, enabling us to analyse your development accurately and determine if any overpaid stamp duty is eligible for reclaim. By leveraging our expertise, developers can maximise their rebates and significantly reduce costs.

How Does Stamp Duty Work For Property Developers & Mixed-Use Properties?

Stamp duty is paid by developers in the same way that a standard residential property transaction would occur, though mixed commercial and residential properties present unique challenges when it comes to stamp duty calculations. 

Many of the most commonly missed reliefs by solicitors relate to developer purchases of commercial and residential properties. We specialise in evaluating the different components of mixed-use developments and identifying any potential overpayments. As an example, if you buy 3 flats worth £150,000 each, you won’t have to pay higher stamp duty rates on the total £450,000 but instead will pay lower rates on each £150,000 purchase. Developers can therefore make use of multiple dwellings relief.

Therefore, if you pay more stamp duty than you need to, you could get your money back and ultimately pay less Stamp Duty Land Tax.

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Reclaiming for Uninhabitable Properties

In certain circumstances, buyers might be eligible for stamp duty relief or an exemption, if the property was in an uninhabitable condition when purchased.

A property may be deemed uninhabitable if there was:

  • A non-functioning bathroom or kitchen area
  • Presence of mould or asbestos
  • An unsafe electrical system
  • No clean running water
  • Unsafe chemicals present
  • Structural damage (either external or internal)
  • Nothing in place to keep the property weather-proof (e.g. an appropriate roof)
  • Animal, plant or insect infestations

If you have paid any stamp duty on an uninhabitable property, you may be entitled to a refund on some stamp duty paid and the 3% surcharge you may have paid if you already own other properties.

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How To Claim A Stamp Duty Rebate?

In order to get started with a stamp duty rebate claim, generally a solicitor or accountant will be able to calculate your correct SDLT amount and any appropriate reliefs. If you are submitting the rebate yourself, you can use an online form by HMRC to fill in any details regarding the property purchase and refund. For those who are hoping to claim multiple dwellings relief after having purchased the properties, be sure to make your claim to HMRC within 12 months of the purchase.

Once you have sent all relevant information to HMRC including your name, address, property details, amount of SDLT paid, how much you should be refunded, and bank details, if successful, HMRC will aim to process your repayment within 15 working days. For further guidance and help with the stamp duty rebate process, get in touch with our team where we can send the information to HMRC on your behalf and ensure your eligibility beforehand.

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