Stamp Duty Refund for Property Investors

Investing in property is always a great idea – it can help people generate an additional source of disposable income while investing in their future retirement plans. However, while both people in the UK and property developers are keen to invest, stamp duty rates can set them back. 

Stamp duty itself can be complex for an ordinary home buyer, for investors, it can be even more so. When it comes to stamp duty refunds, property investors and developers may be left confused by the conflicting information available. 

Instead, property investors looking to claim back stamp duty can get in touch with the experts here at Stamp Duty Rebate. With years of experience dealing with complex stamp duty rebate cases, we’re in the best position to help investors successfully reclaim any stamp duty overpaid.

Contact us today to find out if you, as a property investor, are eligible for a stamp duty refund. If so, we’ll set things in motion fast to get you your money back.

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Who Is Considered a Property Investor?

Anyone that purchases an additional residence, whether for buy-to-let purposes or as a holiday home, is considered a property investor when stamp duty is in question. A property investor, furthermore, maybe a UK or non-UK resident individual or a company. 

Hence, second homes and buy-to-let properties are common examples of the types of property that are subject to higher stamp duty rates – and what can be categorised as forms of property investment.

Do Investors Pay Stamp Duty?

Yes, property investors are required to pay higher stamp duty rates if the property in question has a total value above £40,000 and is neither a caravan, houseboat or mobile home. In 2016, the government introduced higher stamp duty rates to help diversify the pool of homebuyers. While this had positive intentions, it has resulted in many people misunderstanding stamp duty rates and, therefore, overpaying.

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How Much Do They Pay?

How much a property investor pays will depend on the property in question, such as its total value, what type of buyer they qualify as, alongside where they live in the UK. For investors in Scotland and Wales, different stamp duty rates and refund rules apply. 

Below are the current higher stamp duty rates for property investors: 

Normal Stamp Duty Rates

Higher Stamp Duty Rates for Property Investors/Second Homes 

  • Up to £250,000 = 0%
  • £250,001 – £925,000 = 5%
  • £925,001 – £1.5 million = 10%
  • Above £1.5 million = 12%
  • Up to £250,000 = 3%
  • £250,001 – £925,000 = 8%
  • £925,001 – £1.5 million = 13%
  • Above £1.5 million = 15%

 

For example, if you already own a home in the UK and purchase an additional home then you will be required to pay the higher stamp duty rates regardless if you are planning to sell it. However, once sold, you may be eligible for a stamp duty refund.

It is important to note that non-UK property investors will need to pay an additional 2% surcharge on top of the applicable additional higher rates. 

In addition, companies that purchase properties worth above £500,000 will instead be subject to the 15% higher rate. 

Using an online stamp duty calculator for investors may further help, these can be found widely online or via the government website.

When Do Higher Stamp Duty Rates Not Apply for Investors?

In most instances for investors, the higher stamp duty rates will apply. This is because the average property bought is above a certain threshold and investors will already own a main residence in the UK.

However, in the below cases, the higher rates may not be required:

  • If the property value is below the total of £40,000
  • The additional property in question qualifies as a home boat, caravan or mobile home
  • The property is a mixed residential property (i.e. a flat above a shop) 
  • If the lease on the property is not valid for 7 years or less 
  • If another individual owns the lease and there is a remaining 21 years left 

Investors that also purchase several properties in one transaction may be entitled to a Multiple Dwellings Relief (MDR).

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Stamp Duty Refund Eligibility for Investors

If an investor sells their other property, or properties, within 36 months of moving into a main residence then they will be eligible for a stamp duty refund on the surcharge(s) originally paid. However, it is key to note that a refund in such cases won’t be eligible if your spouse still owns part of another property (as legally spouses are treated as a single unit), or if another higher stamp duty rate applies to you. 

In addition, properties that can be proven to be deemed uninhabitable properties or unmortgageable properties at the time of purchase, when the higher stamp duty rates were paid, may also qualify investors for a stamp duty rebate. 

Other exceptional circumstances, such as government restrictions (such as the COVID-19 pandemic) or other public authorities preventing the sale of the investment property in question may qualify for a refund.

How to Apply for a Stamp Duty Refund As an Investor

If you’re a property investor and believe you may be eligible for a stamp duty refund, you can contact us at Stamp Duty Rebate. While estate agents, conveyancers or solicitors may be able to help file a stamp duty return and frequently do, property investors may have more complex terms than the average home buyer. For this reason, by using an expert company like Stamp Duty Rebate, you can have peace of mind that your case is being treated efficiently and fast.

Simply fill out one of our online eligibility query forms or get in touch for expert guidance. We operate on a no-win, no-fee basis. So, if your claim is unsuccessful, we won’t charge you anything.

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How Can Stamp Duty Rebate Help?

Stamp Duty Rebate is an expert in helping people get stamp duty refunds/rebates. We have been in the claims industry for 15 years, and have a great track record. Our team is built up of highly-professional and qualified individuals – from surveyors to legal and tax professionals. This way, you’ll be in safe hands with us when it comes to reclaiming your money.

We will help complete your stamp duty rebate for you. By doing all of the time-consuming and administrative tasks, you’ll be able to sit back and relax and wait till you’re given an answer and receive your money to your nominated bank account. We also operate on a no win no fee basis – so if your claim is unsuccessful, you won’t have to worry about owing lots of money.

Easy, fast and secure – we’ll always try and get you the money you deserve.

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