Most property transactions incur Stamp Duty Land Tax (SDLT), but it's often the case that you may not have paid the correct amount of tax. Overpaying is a very common problem ...
What people didn't realise is that there are a number of reliefs available that mean you can avoid overpaying at the time of the transaction, or being able to claim a repayment later on.
There are four common ways to reduce your SDLT bill:
- Avoidance of the Higher Rate Charge of SDLT on additional property purchases
- The property is mixed-use
- Multiple Dwellings Relief
- Non-residential rates on uninhabited properties
These methods do not involve complex transaction or holding companies and are based on the rules set out in the Finance Act. You can significantly reduce your SDLT bill by being eligible for them.
The timeframe to claim a refund of SDLT is quite short with a 12-month window open from the time the SDLT1 form was submitted to HMRC. And remember that the filing deadline has been reduced to just 14 days post-transaction to inform HMRC of any SDLT due.
HMRC are regularly taken to tribunal by individual taxpayers, so calculating what you owe, without knowing all of the possible reliefs available, can put you out of pocket by quite a large amount.
If you'd like to find out more about anything I've written here, do call me on 01908 774323 or leave a comment below and let's see how I can help you.