Stamp Duty Refund

When buying any property in England or Northern Ireland, you will likely be faced with Stamp Duty Land Tax (SDLT). Scotland and Wales have their own tax schemes which work in a similar way. Stamp duty is a huge part of the property buying process and can be one of the biggest costs property buyers will come across. Unless you are exempt from SDLT, you will have to pay it, yet some buyers end up paying more than they need to, resulting in a stamp duty refund. Find out if you could be eligible for a stamp duty refund here.

Speak to us for a free, no-obligation assessment

Request a call back for a confidential chat to see if you may be eligible for a refund.
OR
Call Us Now 0203 988 0160

This field is for validation purposes and should be left unchanged.

Please read our Terms & Conditions.
Your information will not be passed on to 3rd parties

Client Testimonials

new-home-stamp-duty-refund

What Is Stamp Duty?

Stamp Duty Land Tax (SDLT) is a form of tax which is payable on property or land purchases. The amount of SDLT you’ll need to pay will vary based on a range of factors including the value of the property, whether you’re a first-time buyer, and the type of property itself (residential vs non-residential). Stamp duty is a standalone tax meaning it does not incur VAT. As an example, the stamp duty rates for a single residential property purchase are:

Property Value

Percentage of Stamp Duty

Under £250,000

0%

Between £250,001 to £925,000

5%

Between £925,001 to £1.5 million

10%

Over £1.5 million

12%

 On top of the standard stamp duty payment, some buyers will also need to pay a 3% surcharge. This applies to anyone purchasing a buy-to-let property as a private landlord or through a limited company, and those buying a second home worth more than £40,000.

 For instance, if you buy a second property worth £400,000, you would pay:

  • £3,750 on the first £125,000 (no stamp duty but 3% surcharge)
  • £6,250 for the amount between £125,000 to £250,000 (2% stamp duty and 3% surcharge)
  • £12,000 for the amount between £250,000 to £400,000 (5% stamp duty and 3% surcharge)

 Leaving your total stamp duty bill at £22,000. Stamp duty can therefore be a hefty added cost.

How Does A Stamp Duty Refund Work?

A stamp duty refund may apply if you have overpaid the amount of stamp duty owed. Buyers are able to claim a stamp duty refund if they sell their main residence within 3 years of completing on a new home. This only applies to buyers who bought their new primary residence on or after 1st January 2017. If you qualify for a stamp duty refund, you will receive the 3% surcharge amount above what you would have been charged if the property had not been an additional home back. Using the example mentioned above, this would be a £12,000 refund.

money-coins-refund-stamp-duty
road-stamp-duty-refund-uk

Who Is Entitled To A Stamp Duty Refund?

Anyone who has paid more stamp duty than they need to could be eligible for a stamp duty refund. As previously mentioned, if you own more than one property but sell your main residence within 3 years of paying the surcharge, you may qualify for a refund.

Equally, if you paid a stamp duty surcharge on a property with an annexe, you might be able to make a claim to HMRC. Since 2018, properties with a self-contained annexe on their grounds are now considered a single home. This means that if your purchase was made after the rule change came into place and you paid the surcharge, a stamp duty refund may be possible.

 

If you are unsure as to whether you are eligible for a stamp duty refund, get in touch with the Stamp Duty Rebate team where we’ll be more than happy to discuss your situation.

How Long Do I Have To Make A Stamp Duty Refund Claim?

It is recommended to make a stamp duty refund claim as soon as possible due to deadlines that may apply. Generally, you will have a year to make a claim after having made your property purchase. If you fail to make a refund application within a year, you could risk being rejected.

 The application for a stamp duty refund is fairly simple. You can simply apply using the HMRC online form with your personal details and property information. Alternatively, you can book an assessment with Stamp Duty Rebate where we will assess your eligibility before sending the application to HMRC on your behalf and dealing with any issues that may arise.

 

sofa-living-room-cozy

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
houses-uk-stamp-duty-refund

How Do I Apply For A Stamp Duty Refund?

To apply for a stamp duty refund, speak to our friendly Stamp Duty Rebate team where we offer a no-obligation, free assessment to determine your eligibility. If you qualify, our experts will collect any relevant documentation and submit your claim. Our legal team will also be on hand to defend any possible challenges. You should then receive a decision from HMRC within 6-8 weeks.

Getting a stamp duty rebate or refund has never been easier. Speak to the team today to see how we can be of assistance.