11th
Jul 2023
A long established tax consultancy is warning landlords to be careful after finding the HMRC has been prone to making mistakes and charging landlords too much Stamp Duty.
The consultancy says over the past three years it has managed to reclaim £30 million in overcharged Stamp Duty charges for its clients and believes there are around 60 per cent of buyers who thought they had no reason to check through HMRC duty charges.
The current rate for property purchases of up to £250,000 incurs no stamp duty and for first time buyers they are able to buy a home of up to a £425,000 without having to pay any tax. Property purchases for main residential properties for £250,001 to £925,000 is subject to a 5 per cent Duty charge, whereas if properties are purchased as second homes Stamp Duty charge is 8 per cent.
When adding the purchasing variations together the highest rate of tax is currently 12 per cent for a main residence and 17 per cent for foreign buyers of a second home in England or Northern Ireland, however Wales and Scotland do not charge Stamp Duty but have other purchase tax rates.
A spokesperson for the firm, adds: “By conducting a thorough analysis, seeking professional advice, and understanding the applicable regulations, you can minimise the risk of overpaying Stamp Duty Land Tax. However, if an overpayment does occur, initiating a review promptly allows you to rectify the situation, gather evidence, and pursue appropriate actions to claim a refund or make adjustments as required.”
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