If you believe that you have overpaid Stamp Duty, there are options available for you to make a claim either independently or through an agent. The process generally should take around 15 days if you submit all the required documentation online or by post.
However, it is important to note that delays with HMRC can result in an extended timeframe of up to 6 months for the resolution of your claim. It is advisable to ensure that you provide all the necessary documents and follow the appropriate procedures to expedite the process and increase the likelihood of a prompt resolution.
Many homeowners tend to overpay the stamp duty on their homes in recent years; it has been the case with many people. Hence, if you are amongst the homeowners who have overpaid Stamp Duty and are entitled to a refund, the procedure of obtaining that refund has several steps to follow.
If one were to initiate a claim against their conveyancer or estate agent, it would typically involve commencing professional negligence court proceedings against the solicitor who handled the property purchase and facilitated the payment of stamp duty to HMRC on the client’s behalf.
Such legal actions are intended to address any alleged negligent actions or omissions by the solicitor, aiming to seek appropriate remedies for any resulting losses or damages incurred by the client.
These proceedings would entail following the required legal processes, presenting evidence and arguments to substantiate the claim, and ultimately, pursuing a resolution through the court system.
1. Check if you are eligible
First off, you must check if you are indeed eligible for a Stamp Duty Land Tax (SDLT) refund! This is where both the homeowner(s) and the agency they apply for the refund through have control over.
In simple terms, the more information you can tell your agency about the property up front the sooner and more precisely they can provide you with an answer as to whether an SDLT refund is owed, and if so, how much it is likely to be. The details may include:
When was the property acquired?
How was it purchased?
Comprehensive specifics of the property itself
Most advisers would get back to you with an answer within 48 hours. However, you must submit all information correctly to ensure a prompt and accurate response.
2. A written report
If a refund is truly due, your adviser will provide a written report describing to HMRC why exactly a refund is necessary, what errors were made that resulted in the unpaid Stamp Duty, and what revisions need to be made to the SDLT return that was initially filed by your solicitor if you chose to employ their services in Under normal circumstances, this procedure should take no more than 72 hours.
3. Wait for a response from HMRC
Once the report is sent to the HMRC, you must await their reply. This can take anywhere from 2-3 weeks to more than 6 months, depending on a variety of circumstances such as:
The time of year
The status of the property market
The kind of property
The complexity of the transaction
Location of the property
Do note, that at times, HMRC might be overstretched. As a result, the response may be further delayed. The maximum delay reported so far has been a waiting period of 7 months. However, an ideal adviser will usually guarantee you three things:
They will deal with the matter by themselves
They will regularly contact HMRC for updates
No fees need to be paid until the refund money comes in
Who is liable to pay SDLT?
Stamp Duty Land Tax is charged to buyers for residential property purchases and the sale of property that has commercial purposes. The buyer is responsible for paying the SDLT governed by HSMRC. 15 June 2020.
What is stamp duty land tax payable on?
Stamp Duty Land Tax (SDLT) applies to land purchases as a percentage of the purchase price. Different rates apply depending on property types and buyer characteristics.
How quickly do you get stamp duty back?
Tell me about the duration of the stamping refund? Provided that HMRC has all required documentation your claim will go forward within 15 days. Upon the settlement of the dispute you are entitled to interest but cannot file for compensation.
It may sound vague as the timeframe sounds too long and exhausting. However, if you are eligible for an SDLT refund, then it will be a welcome bonus to have thousands of pounds in return.