Are you due a Stamp Duty Refund?

HMRC has adjusted what has been referred to as ‘incorrect guidance online’ which may mean some property investors and developers are owed considerable sums in stamp duty refunds.

By Debbie Franklin, Director of Tax and property tax specialist

HMRC has adjusted what has been referred to as 'incorrect guidance online' which may mean some property investors and developers are owed considerable sums in stamp duty refunds.

The guidance relates to the 3% stamp duty surcharge introduced in 2016 on the acquisition of second homes or residential properties purchased for investment purposes. In the guidance, HMRC asserted that this also applied to Multiple Dwellings Relief claims, even if they were not wholly residential.

As a result, those who have paid 3% stamp duty surcharge on a mixed-use multiple dwellings relief claim since 2016 will be entitled to a refund.

The surcharge should in fact, only apply where the transaction consisted wholly of residential properties. HMRC has just this week amended its online guidance to reflect this correction.

As a consequence, many developers and investors may have overpaid on stamp duty by 200%, and could be owed refunds worth several hundreds of thousands of pounds.

Peplows Property

FREE INITIAL REVIEW

Contact us for a free initial review.

learn more

© 2024 Peplows Property. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Peplows Property Tax Experts is part of Peplows Chartered Accountants and is a trading name of Peplows Limited, Registered In England Company Number: 3133714 - Registered Office: Moorgate House, King Street, Newton Abbot TQ12 2LG
A list of Directors is available at the Registered Office
Peplows Limited is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales
Details about our audit registration can be viewed at www.auditregister.org.uk, under reference number C003872129