Stamp Duty Refunds: How to Get a Refund From the HMRC
Have you recently paid stamp duty on a property purchase only to find out that you may be owed a refund? If so, you're not alone. In fact, according to recent reports, as many as 1 in 3 people who have paid stamp duty in the last 5 years may be due a refund. The process of applying for a refund from the HMRC can be complex and time-consuming, which is why many people choose to use the services of a professional like Stamp Refunds. In this post, we will look closely at the reasons why you may be owed a refund and how a professional can help you get it.
What is Stamp Duty?
When you buy a property in the United Kingdom, you are required to pay a tax called stamp duty. This tax due is based on the value of the property you are buying. If you are buying a property for £125,000 or less, you will pay zero stamp duty. For properties worth more than £125,000 and up to £250,000, you will pay 2% of the total value of the property in stamp duty.
However, there are certain circumstances in which you may be eligible for a refund of stamp duty.
For example, if you are a first-time buyer purchasing a property worth less than £500,000, you may be eligible for a partial refund of stamp duty. You may also be eligible for a refund if you are buying a property that will be your main home but is not currently habitable (e.g., it needs significant renovations). In these cases, you may be able to claim back the portion of stamp duty paid on the amount that exceeds the value of the property without the repairs/renovations.
If you think you may receive a stamp duty refund, it is important to seek professional help. At Stamp Refunds, we have helped many people get refunds from HMRC.
Who is Eligible for Stamp Duty Refunds?
If you've paid too much Stamp Duty Land Tax (SDLT), you can get a refund from HM Revenue and Customs (HMRC). You'll need to write to them within 30 days of the date you paid the tax.
To get a refund, you must meet each of the following conditions:
-The property you bought is your only or main home
-You, or someone in your family, owns another property
-You didn't buy the property through a company
-You didn't already own a stake in the property before buying it (including through a joint ownership)
-The price of the property was below £125,000 on 22 March 2016
If your case meets all of these conditions and HMRC agrees that you overpaid, they will send you a cheque for the amount of SDLT you overpaid. The refund process can take up to 12 weeks.
How to Get a Refund From the HRMC
If you are owed a refund from the HRMC, there are a few key steps you can take to get your money back. First, you will need to fill out a self-assessment form which is available on the HRMC website. Once you have completed the initial form, you will need to send it to the address provided on the website.
Once the HRMC has received your self-assessment form, they will assess your case and decide if you are eligible for a refund. If you are eligible for stamp duty refunds, they will send you a cheque in the post. It can take a full 12 weeks for the HRMC to process your refund claim, so be patient!
If you think you are owed a refund from the HRMC but don't want to go through the difficulties of filling out a self-assessment form, then you can use a professional agency to represent your case.
Why You Need a Professional Like Stamp Refunds to Represent Your Case
If you're planning on buying a property, it's important to be aware of the potential for stamp duty refunds. The process can be complex and time-consuming, so it's important to have a professional like Stamp Refunds representing your case.
Stamp duty is a tax that is levied on the purchase of property in the UK. The tax is payable by the buyer and is based on the value of the property. In some cases, buyers may be entitled to a refund of stamp duty if they meet certain criteria.
The criteria for stamp duty refunds vary depending on the circumstances, but generally speaking, a refund may be available if:
- The property is sold within a certain timeframe (usually 12 months)
- The property is sold at a loss
- The property is inherited
- The property is used as part of a business dissolution
There are other circumstances in which a refund may be available, so it's important to seek professional advice to ensure that you claim all the money you're entitled to.
At Stamp Refunds, we have helped hundreds of clients get the refunds they're owed. We know the ins and outs of the process and can help you maximise your chances of success. Contact us today to learn more about how we can help you.