Stamp Duty Rebate for Probate Properties

When looking to buy or sell a property, Stamp Duty Land Tax (SDLT) can be a significant part of the process with, often, large costs. Stamp duty is the amount of payable tax on properties or land purchases in England and Northern Ireland, with Scotland and Wales also having similar schemes. The amount you’re required to pay in stamp duty can differ on a case-by-case basis, taking factors such as the price of the property and your buying status into consideration. Though there are certain circumstances where a stamp duty rebate, or refund, can be given. For instance, if you’ve paid more stamp duty than required, you could receive a rebate. Find out whether you can get a stamp duty rebate on probate properties, what this means, and how a rebate can help below. 

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What Is a Probate Property?

Probate is a term widely used for the legal processes of managing the estate of a deceased person and carrying out their wishes as described in the will. As many estates commonly include property, such as the deceased’s home, the term ‘probate property’ has emerged for these circumstances. Many people choose to appoint a professional such as a probate solicitor for dealing with particularly complex estates, though it is possible to administer the will yourself. Probate properties tend to have slightly different rules when it comes to stamp duty which is worth knowing as both a buyer and a seller.

Can You Get a Stamp Duty Rebate for Probate Properties?

Typically, when purchasing a probate property, you will be required to pay stamp duty land tax. What’s more, if it is not the first property you’ve purchased, you will be required to pay an extra 3% of stamp duty. Therefore if you end up overpaying or meeting the necessary exemption conditions, you could be eligible for a stamp duty rebate on your probate property.

If you’ve inherited the estate of a deceased person, you do not have to pay stamp duty land tax, but may be subject to inheritance tax depending on the estate’s value. As you can only apply for a stamp duty rebate on properties where stamp duty is actually paid, you won’t be able to apply for a rebate on inherited estates.

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What Does SDR for Probate Properties Mean?

As stamp duty can come at a substantial expense, it can be reassuring to know that there are reliefs available for specific properties and circumstances. According to the government website, when it comes to probate properties, the buyer will be exempt from stamp duty if all the below conditions are met:

  • The purchase is made from the personal representatives of deceased individuals
  • The deceased individual occupied the property as their main (or only) residence at some time in the period of two years ending at the date of their death
  • The area of land acquired does not exceed the permitted area of 10,000sqm

Frequently asked questions

How to Apply for a Stamp Duty Rebate For Probate Properties

If you believe you are eligible to receive stamp duty relief or rebate, the application procedure is fairly straightforward. Simply complete our free stamp duty rebate online claim assessment, stating the details of the purchased property and other required information. Our experts will then determine your eligibility before collecting all the necessary documentation to send to HMRC on your behalf. At Stamp Duty Rebate, we also work to defend any possible challenges HMRC might have towards your claim, helping you receive the money you’re entitled to.

Can Partial Stamp Duty Relief Be Claimed for Probate Properties?
If the acquired land does exceed the permitted area mentioned in the exemption conditions, but the other two conditions are met, then partial relief may be claimed. Though it is important to know that where partial relief is claimed, part of the consideration for the acquisition then becomes chargeable. This is the difference between the market value of the permitted area and the total market value of all the land. So you will not be able to receive a full stamp duty exemption in this case.

It is also possible that partial relief can be withdrawn if the property trader: spends more than the permitted amount on refurbishments (up to £10,000), grants a lease or licence of the dwelling, or permits any of its employees or principals to occupy the land. If any of these conditions are met, you could be liable to pay stamp duty land tax in full without any relief so make sure you understand the conditions in their entirety.

How long does a Stamp Duty Rebate take?

Provided you have completed all the necessary documentation and included all information HMRC might need, you should receive a decision within 10-12 weeks informing you of whether the rebate has progressed successfully or not, though it can take longer if you are required to send more information for your claim. If you have been successful, the refund should be sent to you shortly after receiving the decision.

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