Purchased A Property In The Last 4 Years?

All England and Northern Ireland property buyers are required to pay Stamp Duty Land Tax (SDLT) when purchasing a property or land over a certain amount. Scotland and Wales have equivalent taxes called; Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) which are set locally.  

The amount of SDLT you pay depends on the purchase price of a property. If the property falls under the base threshold, you won’t need to pay any stamp duty. 

When buying a second home, there is an extra 3% on top of the standard Stamp Duty rate, called a Stamp Duty Surcharge. This surcharge is currently being refunded to thousands of UK property owners on second homes that were bought in an uninhabitable condition.

A home can be deemed uninhabitable for a variety of reasons. The common ones are:

• If the home cannot be used to its full potential (i.e. workable kitchen, bathroom and electrics).
• If the home puts you at risk of injury (i.e. structural damage)
• If the home affects your health (i.e. damp, mould, asbestos). 

There are a variety of different SDLT refunds available. As we deal with a specific type of refund, it’s important to know that you are eligible.

The essential criteria is:

• Not a first time buyer
• The property you purchased is classed as ‘uninhabitable’
• Purchased the property within the last four years
• The property is not used for commercial purposes

After receiving all documentation from the client, a refund can take approximately 6 weeks. 

After the initial filing of the SDLT return, the basic rule is that a refund cannot be claimed after 12 months. However, HMRC have been making exceptions for up to 4 years after filing.