Stamp duty land tax
Know the basics. Let us get to grips with the more complex and don’t overpay your stamp duty.
You pay Stamp Duty Land Tax (SDLT) when you buy a property. Most people leave the calculation of the amount due to their conveyancing solicitor as it is usually relatively simple.
However, like all things in tax, it is never quite as easy as it looks. We have clients who have paid too much SDLT simply because their solicitor was – understandably – not a tax specialist. A common example is missing that the property being acquired includes a separate annex above the garage or in the garden. This can make a massive difference to the SDLT due. In one recent case the amount of SDLT overpaid was over £100,000, an amount we were able to reclaim for our client.
Likewise, the 3% additional SDLT rate which is due when you buy a second home, or where you buy your new home but haven’t yet sold your old one, is repayable when you sell your original home within the required timeframe. Again, we were able to reclaim significant sums for our clients.
These are only two of the most common examples. If you are in the process of buying a property, or have already done so, and want us to review your SDLT to check you are not overpaying, please get in touch.
This guidance is generic in nature and does not constitute advice. You should take no action based upon it without consulting ourselves or your own professional advisor.