Reclaim the extra SDLT - Free
The higher rate of stamp duty land tax (SDLT) applies where you buy a residential home (a dwelling) and you already own one or more. The extra SDLT (3%) catches innocent buyers who, for whatever reason, acquire a new home before selling their old one. There’s no escape from paying the extra tax but it can be reclaimed later, subject to deadlines.
Stop Press! Urgent Amendment to the Guidance!
The official guidance on Stamp Duty Land Tax from the government has been recently updated to reflect the reality of the current global situation, among other things.
As of now, any person who bought additional residential property on or after January 1st 2017 and has been prevented by ‘exceptional circumstances’ from disposing of a previous residence in order to claim a refund on their 3% surcharge for SDLT may still be eligible for a refund.
These exceptional circumstances ‘may be, but are not limited to’ the repercussions of the Covid-19 outbreak or the actions of a local authority having the consequence of delaying the sale beyond the standard 3 year limit.
Originally the higher rate of SDLT could only be reclaimed if you sold your old home within 18 months of buying the new one. The government then increased the time allowed to three years.
There are deadlines for making a claim. This was amended in the 2018 Budget meaning there are now different deadlines for reclaiming the extra SDLT charges depending on when the transaction (sale of your old home) takes place.
Sales on or before 28 October 2018 either: 3 months from sale of old home or 12 months from purchase of new one whichever is the later
Sales on or after 29 October 2018: 12 months from the later of the sale of the old home or 12 months from the purchase of new one
HMRC makes it easy to reclaim the extra SDLT (there are different procedures for Scotland and Wales). You have two options: a downloadable form or an online claim through your GOV.UK account. Neither should take more than ten minutes of your time.
While you have three years in which to sell your old home, you must reclaim the extra SDLT within twelve months following the sale. There are two simple ways to make the claim yourself that take a matter of minutes.
If you have sold what was previously your main residence, you can apply for repayment of the higher rates of SDLT for additional dwellings. To qualify for a refund, you must have sold your previous main residence within three years of buying your new home.
Option 1 |
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Use HMRC’s free service and follow the two-step process: |
Use HMRC’s online form. If you have a Government Gateway user ID you may proceed using this. If you do not, you will need to create one. You can create a Government Gateway ID when accessing services from most government departments |
Complete the online form, print, and post it to HMRC using the address indicated on their form. |
There is no charge except the cost of postage. |
Option 2 |
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If you think you have overpaid SDLT for other reasons, and there are many, please contact Cornerstone Tax/SDLT Refunds, a division of Cornerstone and we will provide you with a free initial SDLT health check. Should we identify an overpayment, for a no win/no fee service we can undertake to make the claim on your behalf. Fees will be agreed following your application. |
Reclaim the extra SDLT - Free
You can begin an SDLT Refund enquiry online – alternatively, you can contact one of our experts by phone or email and they will be delighted to help you with your case.
To contact us by phone, email or post:
T 03333 050954 E newbusiness@ctatax.uk.com
