How To Get A Refund On Stamp Duty You Pay?

Stamp duty land tax (SDLT) is a tax you pay in England to the government when you buy houses, apartments, other buildings, or land over a specific value. Some things can affect the stamp duty you pay, such as owning other properties, and it is down to yourself to ensure your pay the correct amount. If you do not pay the required amount of stamp duty, you can get into trouble, so you will want to avoid getting it wrong. However, there are times when you can get a refund on stamp duty paid, which is always a welcome bonus. Below is some advice to help you find out if you are owed a rebate and how you can claim this back and get a refund from the government.

The Different Rates Of Stamp Duty

You can pay different rates of stamp duty, and things have changed a lot over the last couple of years due to the Covid-19 pandemic. However, the current rates of stamp duty are as follows:

Residential Properties: The current rate of stamp duty for residential property buyers is anywhere from 0% up to 12%, depending on the value of your property. If the property is worth less than £125,000, there is nothing to pay, unless this is a second property when the rate will be 3%.

Commercial Properties: The rates of stamp duty for freehold commercial properties are lower than residential ones. Currently, if the value is lower than £150,000, there is nothing to pay for properties valued over this amount, and below £250,00, it is 2%. For properties valued at over £250,000, the rate of stamp duty is currently 5%.

First Time Buyers: For first-time buyers, that is a waiver of stamp duty currently n properties with a value of up to £500,000. You may also qualify for this discount if you bought your property before the 8th of July 2020, and you can find out more by clicking here.

Who Qualifies For A Stamp Duty Refund?

If you have more than one property and decide to sell one of them, you can qualify for a stamp duty refund. You will need to have completed the purchase within the last three years to be eligible, and the refund equates to the 3% surcharge you would have been charged if the property was not an additional one. If you qualify, there are a couple of ways you can apply for your stamp duty refunds.

Applying For A Refund

The simplest way to get a refund on stamp duty paid is to have a lawyer take care of the paperwork for you. However, it is also something you can consider doing yourself if you have the time, and you can apply online or print off a form and send it to HMRC by clicking here. You will need to provide all the information requested, and the claim is typically processed within 15 working days of being received. Whether you manage the claim yourself or use the services of a reputable lawyer, it is a quick and simple process to claim back your stamp duty on a second property.