26/04/2022
🙌MONEY BACK FROM HMRC🙌
Doesn’t matter how big or small the amount, every penny counts and even better when it’s a rebate from HMRC!
Stamp Duty is a b!* and it’s eye watering for every property you buy with the lovely bonus of an additional 3% for owning multiple properties.
We recently managed to get SDLT Overpayment Relief on our purchase of “The Terrace” as it was inhabitable at the time of completion. You need to apply within 12 months of purchase completion although we had exceeded this timeframe.
Review the HMRC website and understand how the SDLT 1 form is completed. More than likely the SDLT 1 will have been completed either as 01 Residential (standard code used by solicitors) or 04 Residential - Additional Properties. It should be 03 Non-Residential if your property is inhabitable.
HMRC payout immediately with a caveat that they will carry out their compliance checks within a period of 9 months.
So what do you need to do:
Determine whether or not the property was inhabitable at the time of completion. This means no working kitchen, bathroom, utilities etc
1. Request a copy of the SDLT 5 certificate from your solicitor/conveyancer who filed the original SDLT 1 on your behalf - need the UTRN reference.
2. Collate evidence like photos which show the state of the property at the point of completion as evidence.
3. Write a letter to HMRC covering the following points:
- UTRN
- Updates required to SDLT 1 (usually Q1 Type of Transaction and Q14 Total Amount of Tax Due)
- Value of refund due
- Bank account details of where repayment should be made.
- Include evidence
Whilst we didn’t incur SDLT directly on the house price we managed to get a rebate based on 3% of owning multiple properties.
Challenge your solicitor/conveyancer when they complete the SDLT 1, they just put in code 01 Residential and send it off leaving you with a SDLT bill!
£3450….every penny counts!
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