If you have purchased any of the following types of property there is a very good chance you will be eligible for a refund of SDLT:
Buildings arranged as flats
Properties in Shell Condition
Fire Damaged Properties
Part built or part converted buildings
Part Exchange Properties
Long Term Empty Properties
Chain Saving Purchases
Mixed Commercial/Residential Purchases
Purchases from Executors
Houses which are to be demolished
This is just a selection of some of the more common grounds for a refund, there are some which are more obscure but still highly relevant to property companies and investors.
Case Studies
The subject of SDLT refunds is widely misunderstood. Sometimes a transaction might qualify for a refund on more than one basis. Even if you’ve had a refund of SDLT have you had all you are due? The two case studies below illustrate the importance of getting the right advice.
Case Study One
Our client purchased this shop and three flats in shell condition. The purchase price was £1,125,000 and an SDLT figure of £45,750 was indicated by the online calculator. Our client duly paid this sum.
By providing concise evidence to HMRC demonstrating how long the property had been empty we were able to secure a refund in excess of £36,000, the refund was received within a month of submission.
Case Study Two
Our client had purchased a mixed commercial/residential property and his accountant had helped him secure a refund of SDLT based on the precise configuration of the units.
We were aware of a recent change to SDLT rules which meant our client qualified for a further refund and in under a month of submitting an SDLT refund application we had obtained a refund in excess of £13,000 for our client.
Even if you’ve previously had a refund of SDLT, you may still be due further monies. To find out call Stampback 020 8545 2623
Case Study Three
Our clients purchased this wonderful home for £2.3 Million. They approached us to find out whether it might qualify for a refund of SDLT on the basis that that it was ‘uninhabitable’. The property was undoubtedly dated in terms of its overall presentation but was fit to be lived in.
The house and gardens were on one side of a lane and on the other side was 5.7 acres of land. Our research revealed that this land had been let historically on farm business tenancies and that such a tenancy was in place at the time of our client’s purchase. On the basis that the field had not been historically enjoyed as part of the house and grounds but had for many years been let on farm business tenancies, we were able to make a successful refund application on behalf of our clients, which resulted in a refund of SDLT to our clients in excess of £150,000.
There are more than 50 reasons why a property transaction may qualify for a refund of SDLT, some are fairly common, some less so.