There are many situations in which you can get a Stamp Duty refund. But how long does it take?
We will cover:
- What are the situations in which you might have overpaid SDLT
- How to request a refund from HMRC
What is Stamp Duty Land Tax?
Stamp Duty Land Tax is a tax that property buyers pay depending on the purchase value of the property.
There are numerous factors that influence the amount of Stamp Duty payable, such as the type of property and its condition, and the circumstances of the seller and buyer, such as properties purchased from Probate or residential, non-residential and mixed-use.
In many situations, you could potentially overpay Stamp Duty due to several factors. In these cases, you might get a refund provided you state the reasons to HMRC.
Here are some examples of when you can be eligible for a refund:
- On your second home surcharge if you sell your main residence within 3 years of paying the 3%
- A property with an annexe, granny flat or similar
- Shared ownership as a first-time buyer
- Probate property
- Inhabitable derelict property
- Transfers of property between connected people or business.
Read more of our tax tips on this topic:
Stamp Duty refund
If you’re requesting a refund on your additional property, you must have sold your previous main residence within 3 years of buying the new property to qualify.
Above all, you might have overpaid Stamp Duty because HMRC’s calculator is often incorrect. It doesn’t take into consideration the multiple dwellings relief (MDR) and it doesn’t ask you about the value of your property, which affects the amount you pay.
How long does it take to get Stamp Duty refund?
If you believe you have overpaid Stamp Duty, you can make a claim yourself or through an agent.
Your claim should technically take 15 days if you provide all the right documentation online or by post. However, it can take up to 6 months due to delays with HMRC.
Keep in mind that, with the number of reliefs available (of up to 50 possible scenarios), this also means there will be more work for HMRC. The time of year, state of the property market, type of property, complexity of the transaction, and even where the property is located can all affect how long it takes to get a Stamp Duty refund.
If you have overpaid Stamp Duty, we can make a claim on your behalf and ensure that your money gets back where it belongs.
Sending an e-mail is simple too, just fill out the short form below and we’ll get back to you!
Kind regards Ilyas