Stamp Duty Refund On Uninhabitable Property

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Here’s a scenario that could get you a Stamp Duty refund that you might not be aware about.

stamp duty refund on uninhabitable property

(2-minute read)

We will cover:

  • What makes a property ‘uninhabitable’
  • The rules surrounding Stamp Duty refunds for uninhabitable property


Here’s an important topic that could significantly impact your property investments: potential Stamp Duty Land Tax (SDLT) refunds on the purchase of uninhabitable properties.

These are the main points to consider:

  1. Understanding Uninhabitable Properties: A property is considered uninhabitable if it lacks basic living functionalities like a functioning kitchen or bathroom, running water, or heating. Serious structural problems, such as the presence of asbestos or lead, can also deem a property uninhabitable.


  2. SDLT on Uninhabitable Properties: When buying a second property, you typically pay an additional 3% SDLT. However, if the property you buy is deemed uninhabitable, you may not need to pay the higher rate. This could result in considerable savings on your property investments.


  3. Qualifying for SDLT Refunds: If you’ve purchased a second property within the past four years that was significantly damaged or had issues rendering it uninhabitable, you may be eligible for an SDLT refund.


  4. How to Claim an SDLT Refund: The process involves an assessment of the condition of the property at the time of purchase, gathering of relevant documentation, and submission of the claim to HMRC. The overall process typically takes around six weeks.


  5. No-Win, No-Fee SDLT Refunds: Many tax professionals offer a no-win, no-fee policy for SDLT refund claims, ensuring you incur no financial risk in attempting to claim a refund.


We can help you navigate these possibilities and ensure you’re not overpaying on your SDLT. If you’ve purchased a property in the past four years that might fit this uninhabitable criteria, or are considering buying such a property, this could be an opportunity to recover or save significant funds.

Should you wish to explore this further, I’d be more than happy to assist you in assessing the potential for an SDLT refund.

Contact us today at 01772 788200 to find out more about how we can help, or WhatsApp us out-of-hours at 07787 010190.

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Kind regards Ilyas