Here at Advocate Finance, we have teamed up with a specialist tax adviser in obtaining stamp duty relief that could be available to you, but not necessarily fully understood by solicitors.
There are many circumstances where a stamp duty land tax (SDLT) refund may be applicable in relation to a historic purchase of property or land, and some of these circumstances are summarised below, in brief.
Cases where a SDLT reclaim can be submitted up to one year after completion
Multi Dwellings Relief (MDR) can be claimed to reduce the SDLT payable when purchasing two or more dwellings in a single transaction.
- Houses with an annex – cannot be connected to the main residence, meaning it must be fully self-contained with it’s own entrance
- Multi-unit/Portfolio purchases – residential properties acquired from the same vendor
- Mixed MDR – multiple properties acquired from the same vendor which included a commercial property along with residential properties
Property Trader Relief – where a residential property has been purchased via a Ltd company with the intention of renovating and then selling it on. ‘Property trader relief’ may have applied to the transaction which would have reduced the SDLT charge to nil. Renovation costs must not have exceeded £20,000 and the property cannot have been let out at any stage after purchase.
Cases where a SDLT reclaim can be submitted up to four years after completion
Transfers to a Limited Company – where an investment property is transferred from joint owners/tenants in common to their own Ltd company, the SDLT charge could have been nil. This is only applicable when special rules covering partnership to Ltd company transfers override the normal SDLT calculation. There are also other criteria that must be met for this to be applicable.
Misclassification of a residential property – where an investment property has been acquired but was either derelict, had a business on site, had managed woodland or benefited from wayleaves payments for telephone/electricity pylons. Then it could have been classified as a mixed-use property, meaning the non-residential rate of SDLT could have been applied to the purchase.
Need more help with your stamp duty refund?
This post does not constitute tax advice. For personal tax advise please contact us and we can put you in touch with our tax adviser.
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Megan Parkin – Property Finance Adviser
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