Stamp Duty Land Tax (SDLT) brought in £13 billion for HMRC in 2017 – an increase of 95% in 5 years. Of the transactions giving rise to this figure, 1 in 6 is calculated in error, meaning that £2 billion in overpaid SDLT may be owed by HMRC. HMRC are currently attempting to process 900 refunds per month – a 400% increase in claims.
Commentators believe that the blame for this situation lies with HMRC and its often maligned online tool, which is relied upon by accountants, solicitors and buyers to calculate the correct amount of SDLT to pay. The tool often fails to take into account available discounts and reliefs which can reduce the amount payable. The introduction of the 3% surcharge has confused matters even more.
Working with Rufus & George will avoid costly mistakes such as:
- Paying the 3% surcharge when it is not required.
- Classifying a property incorrectly.
- Not using connected parties to the transaction.
- Not taking into account facilities and provisions present on the Title Deeds.
As standard, you receive written advice and certification from a team of Chartered Tax Advisors backed by £1 million in insurance cover.
Rufus & George can help you ensure that you are paying the right amount of tax on a purchase, or claim back overpaid SDLT on any qualifying purchase made in the last 4 years.
A London sales agent approached us as they felt that a former client had overpaid SDLT on a significant purchase.
Notting Hill House
- Bought in 2017
- Purchase price: £7,900,000
- SDLT overpaid: £861,750
- Amount recovered for the client: £334,075