Have you overpaid SDLT?

//Have you overpaid SDLT?

Have you overpaid SDLT?

Have you overpaid Stamp Duty Land Tax?

Stamp Duty Land Tax is complex, this tax has been subject to more alterations since inception in 2003 than any other comparable tax.  The legislation governing it is now full of exceptions, exemptions and over 30 reliefs are available covering the vast variety of property types and property buyers, not all of which are obvious to agents and conveyancers who are generally inclined to simply differentiate between a whether a property is residential or commercial for purposes of SDLT calculation.

This means people buying property with land, outbuildings, woodland, orchards or separate annexes, for example, may find themselves paying a higher SDLT bill on their purchase than they should.

Opportunities to reduce your SDLT

Large areas of land

If your property has land attached to it of more than 1.3 acres, it’s likely you may qualify for “mixed-use” SDLT rates and potentially save thousands.


Does your property have a ‘granny annex’ or separate living accommodation? You could qualify for “multiple dwellings” tax relief.


You may qualify for multiple dwellings relief or “mixed-use” which could substantially reduce the applicable SDLT rates and save significant tax.

Woodlands and orchards

Where woodland or orchards are parcelled up in the same transaction alongside a residential property, it may be argued the purchase is “mixed-use” resulting in lower rates of SDLT being applied and significant savings being achieved.

Six or more residential properties 

If you purchase 6 or more residential properties as part of one transaction, there may be a choice between multiple dwellings relief and commercial rates of SDLT.

It is estimated that over £2bn was overpaid in SDLT in 2018 due to incorrect returns and available reliefs not being claimed.

You have 12 months from the due date of your SDLT return to reclaim any overpaid SDLT, so all is not lost.

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When does the higher 3% SDLT surcharge not apply?

There are a limited number of transactions to which the 3% SDLT surcharge may not apply.

Have you overpaid SDLT?

It is estimated that over £2bn was overpaid in SDLT in 2018, make sure you have not overpaid and if you have you may be able to claim a refund?


SDLT collected by HMRC in 2018


Estimated SDLT overpaid


Refunds issued by HMRC per month

Why is SDLT so complex?

Clients tend to be over reliant on their accountant for all tax matters. The complexity of the tax system means that most accountants are no longer experts in tax and specialist tax advice should be sought.

Solicitors, lawyers and agents are not tax specialists, and yet in many cases can become liable in cases where they have made incorrect assumptions regarding a property and the SDLT position which leads to incorrect filings and payments being made.

SDLT legislation has been subject to multiple changes, most recently in July 2016.  The full range of changes have significantly complicated the application of this tax and led to widespread confusion.

What do I do if I think I have overpaid SDLT?

Firstly do not panic, you may be able to claim a refund.  Contact us for a free assessment on whether you may be eligible for a refund.

If you have not yet completed your purchase or filed your SDLT return contact us to see if we can reduce your SDLT liability before you pay it.

Contact Us

Anthony Davies, Founder and Director

PRIMOtax Limited

t: 01293 301989

e: [email protected]


2019-08-22T18:09:36+00:00 |Knowledge Base|