What is SDLT?
Stamp Duty Land Tax (SDLT) is charged if you buy a property or land over a certain price in England and Northern Ireland. You pay the tax when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Buy a property through a shared ownership scheme
- Are transferred land or property in exchange for payment (including if you take on a mortgage or buy a share in a house)
How much SDLT will I pay
The amount of SDLT you pay depends upon the amount of consideration payable and reliefs available to you. The total value you pay SDLT on is usually the price you pay for the land or property. Sometimes it might include other typesof payments such as goods/services swapped in exchange for the land or property, transfer value of any outstanding mortgage or other consideration given in exchange for the land or property.
Individuals can also end up paying an additional 3% surcharge if buying a new residential property means you own more than one property. Surcharges can also apply to non-UK resident individuals and corporate bodies for example.
Can I reduce the amount I have to pay?
- First time buyers’relief
- Multiple dwellings relief
- Employers buying an employee’s house
- Property developers providing amenities to communities
- Charities buying for charitable purposes
- Purchasing non-residential property in freeport tax sites (this can entitle you to 100% SDLT relief)
- Relief for mixed-use (e.g., Buildingswith both residential and non-residential use)
- Claiming back additional 3% SDLT surcharge paid to HMRC
The above list is just some examples –get in touch to discuss your circumstances.
How does the claim work?
With the property purchase, your SDLT return must include the claim for relief. If your solicitor has already filed your SDLT return as part of your purchase, an amended SDLT return may be required to submit your relief claim. We can submit an amended SDLT return on your behalf. If you have overpaid your SDLT, a refund will be issued.
What is the deadline for claiming the relief?
A SDLT return is due for filing within 14 days of your effective date. This is usually the date the transfer completes but it can be the date the contract is substantially performed if this is before completion.
Usually, we can claim a relief on your behalf within 12 months from the filing date. Some reliefs (such as reclaiming surcharges)can be claimed within 2-3 years of your effective date.
If you would like any further information about SDLT, please don’t hesitate to contact us to arrange a consultation with our tax specialists. Call us on 01908 219100 or drop us an email on firstname.lastname@example.org.