Did you know you could claim back stamp duty?

Buying a home is an expensive endeavor, with stamp duty being one of the major costs.

While you may think stamp duty is set in stone once you've completed the purchase, you can claim back the additional higher rates in certain situations.

The standard stamp duty rates on property purchases cannot be reclaimed. Only the additional 3% surcharge on second homes/buy to lets can potentially be refunded.

When can the additional 3% stamp duty be reclaimed?

• If you sell your previous main residence within 3 years of buying a new main residence that you paid the additional 3% surcharge on
• The timeline depends on when the previous home was sold. The claim must be made within 12 months of paying the higher rate stamp duty or within 3 months of selling the previous main home, whichever is later
• The property the higher rate was paid on must become your new main residence

How do you claim back the additional 3% stamp duty?

• You can claim directly via HMRC's website or by post. You'll need details like the stamp duty filing dates and references.
• Using a tax advisor or solicitor to handle the claim is advisable but not required.
• Be wary of claims some management companies offer no-win no fee services, as their fees are often high if successful. Double-check in advance what their part of the cake is.

Key warnings:

• Just because you claim a refund does not mean HMRC agrees it is valid. They can claw back invalid refunds plus interest and penalties
• You must prove the 3% surcharge relief criteria are met. The responsibility ultimately lies with the taxpayer.
• HMRC considers many claims for stamp duty refunds "surprising" so exercise caution and seek professional advice if unsure

What if the property is found to be uninhabitable?

Can you get a stamp duty refund if a property is uninhabitable?

• Yes, you may be able to claim back some or all of the stamp duty paid if the property is deemed uninhabitable.
• To qualify, the property must have been uninhabitable at the time of purchase, not become uninhabitable later.

What makes a property uninhabitable for stamp duty purposes?

• Having no kitchen, bathroom, running water, electricity or heating
• Structural issues making it unsafe, severe damp/mould issues etc
• Presence of asbestos, chemical contamination, vermin infestations etc
• The property must lack basic amenities for everyday living. Just needing renovations does not count.

How to claim back the stamp duty:

• Contact HMRC directly and submit a claim form and supporting evidence
• Using a tax advisor or claims company to handle the process may be advisable
• The claim must be made within 12 months of paying the higher stamp duty rate
• Be prepared to prove the property was uninhabitable at the time of purchase e.g., with surveys

Risks and warnings:

• HMRC may reject claims they believe to be invalid, and can recoup incorrectly paid refunds
• Get professional advice to assess if your property and situation qualifies for a refund
• Beware of claims companies charging very high fees, get fee structures in writing

Read the rest of the article: https://www.tallboxdesign.com/stamp-duty-rebate-tax-refund/