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Stamp Duty Claims

Case Studies

As part of our Stamp Duty Land Tax (SDLT) specialist advisory service, we are often asked to assist with SDLT refund applications. These are generally by way of an amendment to the original SDLT return (time limit for a claim is 12 months) or an overpayment of tax claim (time limit for a claim is 4 years).

The following case studies from 2023 resulted in refunds of £297,270 for our clients.

Stamp Duty Case Studies

Derelict Property

In this case, the original SDLT return was submitted on the basis that the transaction was subject to the 3% surcharge.

Following our detailed review, it was determined that the property was in such a state of disrepair so as not to be suitable for use as a dwelling. Accordingly, not only should the 3% surcharge not have applied, nor should the standard rates applying to residential property transactions. Instead, the lower rates for non-residential property should have been applied, significantly reducing the SDLT payable and providing a refund of £176,250.

Multiple Dwellings Relief

Both of these cases involved the acquisition of a property which contained a self-contained annex. The original returns were submitted without claiming Multiple Dwellings Relief (MDR).  These cases came to us approximately six months after the original land transaction returns were filed, well within the amendment window of 12 months.

Following our detailed review, it was determined that in both cases, the annexes offered all the facilities to support independent everyday living (i.e. kitchen, bathroom, living areas etc) and the requisite level of privacy so that an unconnected tenant could reside at the property.

As such, a claim for MDR was made and resulted in refunds of £35,250 and £58,070 in each respective case.

Special Partnership Provisions

This case involved the retirement of one partner and the transfer of the business premises to the other partner as part of the dissolution of the partnership. The business premises was held in the partnership, as partnership property, equally between the partners.

On the dissolution of the partnership, the business premises was transferred to a limited company of which the remaining partner held 100% of the shareholding.

The original Stamp Duty Land Tax (SDLT) return was submitted applying the market value of the property as the purchaser was a connected company.

Following our detailed review, we concluded that the special partnership provisions contained at Schedule 15 FA 2003 applied so that an alternative calculation was required to determine the chargeable consideration. This resulted in a reduction of the chargeable consideration from £750,000 to £375,000, giving rise to a refund of £18,750.

Linked Transactions And Mixed-Use

In this case, the original return was submitted on the basis that the property consisted entirely of residential property.

The transaction consisted of the acquisition of a house and garden and grounds, along with the adjoining lands (held under separate title) that were (and continue to be) farmed by a local farmer.

Following our detailed review, it was concluded that as the residential property transaction was linked to a non-residential property transaction, the mixed-use rates applied, thereby generating a refund of £8,450.

How can we help you?

If you feel that you or your client has overpaid SDLT, we would be more than happy to review the case and provide a second opinion and assist with the application for a refund, if applicable.

SDLT is becoming increasingly complex. If in doubt, seek professional advice.

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