Stamp Duty Land Tax (SDLT) refunds – have you paid too much?

Have you recently bought a residential property for at least £300,000 with a subsidiary dwelling, such as an annex or granny flat? If so, you are likely to have overpaid SDLT due to a little known SDLT relief for such properties. The good news is that you have 12 months and 14 days from your purchase date (being the completion date) to apply for your refund e.g. for a purchase completing on 6 December 2019 you have until 20 December 2020 to claim your SDLT refund, which would normally be £10,000 for properties between £500,000 and £925,000 and much more for higher value properties.

For the purposes of this relief a “dwelling” means a building or part of a building which is suitable for use as a single dwelling or is in the process of being constructed or adapted for such use. To be treated as separate dwellings for these purposes there must normally be separate access to the subsidiary dwelling.

It has been widely reported in the financial press recently that a high proportion of property buyers overpay SDLT due to this relief and other SDLT reliefs being overlooked.

We are specialists in this area and are happy to perform an obligation-free check to see if you are entitled to a significant SDLT refund on your property purchase if you paid at least £300,000 for it and it has at least one subsidiary dwelling with a separate entrance as described above.

Contact us

Please get in touch with David Bennett, Tax Partner if you need support, or alternatively contact us here.

This is based on an update which originally appeared on the website of our colleagues at MHA MacIntyre Hudson