Stamp Duty Land Tax has been subjected to more changes over the past few years than any other comparable tax.
Some of these changes were out of the norm, largely due to the effect the pandemic had on the housing market. But either way, it’s only further complicated the issue of calculating the correct amount SDLT due on home purchases.
It’s estimated that tens of thousands of homebuyers overpay SDLT every year. Some to the tune of thousands of pounds.
It can be complicated trying to go back and work out how much you should have paid. You have to work out what the rates were when you purchased your property, and there are multiple rates, tiers, and stipulations based on your individual circumstances.
For this reason, it’s essential that you work with a tax advisor specialising in Stamp Duty Land Tax. Working with a qualified tax accountant is the only way you can be sure that you’ve not overpaid on SDLT.
In the UK, one of the leading tax advisor companies is Cornerstone Tax Advisors. Cornerstone has a number of stamp duty experts, such as David Hannah, who can help calculate if you’ve overpaid SDLT and help you seek a refund from the government.
How Cornerstone Tax Advisors and David Hannah can help
Cornerstone is one of the fastest-growing tax advisory companies in the UK. They have offices in both Leicestershire and London, and more than 30 consultants and administrative staff.
David Hannah has spent more than three decades working in property tax and is a leading voice on SDLT in the UK. He’s ACA and CTA qualified and works as a Principal Consultant at Cornerstone.
Cornerstone and David Hannah specialise in Stamp Duty Land Tax, as it’s one of the more complicated areas of tax and because so many people are overpaying every year.
The legislation governing SDLT is full of exemptions, reliefs, and different rules based on a number of factors determined by an individual’s circumstances and the property in question.
A lot of these rules are not obvious to conveyancers and property solicitors. There is also a general lack of help and support from HMRC, making it a difficult task to calculate SDLT accurately unless you’re an expert.
If you think you’ve overpaid stamp duty in the past, or if you’ve bought a property and want to be sure you have not overpaid, you should call David Hannah and the team at Cornerstone.
They will perform a professional evaluation and how much tax you’ve paid, advise you if you’ve overpaid, and give you the support you need to file for a refund with HMRC.
Why do you pay Stamp Duty Land Tax?
When purchasing property or land in England or Northern Ireland, you are subject to paying Stamp Duty Land Tax (SDLT) based on how much you paid for the property.
At face value, SDLT doesn’t look too complicated as it’s broken down into percentages and tiers and increases based on the value of a property.
This couldn’t be further from the truth, however. There are a number of things that affect the percentage and how much someone pays in SDLT.
At the time of publishing this, SDLT is further complicated by the fact there have been periods of ‘stamp duty holidays’ as a result of the pandemic.
If you bought land or property on or around the dates when the holidays came into effect, there is a good chance that you have overpaid.
SDLT rates are also different for homebuyers and landlords in Scotland and Wales. Which again, causes some confusion for homebuyers living outside of Scotland and Wales, and purchasing properties in those countries.
If you have any questions or concerns about how much tax you’ve paid no matter how long ago you purchased your property, reach out to David Hannah at Cornerstone for professional advice.