SDLT refund – Have you overpaid?

//SDLT refund – Have you overpaid?

SDLT refund – Have you overpaid?

Have you overpaid SDLT and need to claim a SDLT refund?

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 SDLT is now full of exceptions, exemptions and over 30 reliefs.  Not all of which are obvious to agents and conveyancers who are generally inclined to simply consider whether a property is residential or commercial for the purposes of the SDLT calculation. As a result over 400 transactions a month are filed incorrectly and result in overpaid SDLT and need a SDLT refund claim.

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. A tax payer has 12 months to amend a return an claim a SDLT refund in most circumstances.

Opportunities to reduce your SDLT

Large areas of land

If your property has land attached to a large area of land with some agricultural use, 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.

Where these factors exist we find that they are commonly missed resulting in overpaid SDLT. It is possible in many cases to claim a SDLT refund, please contact us to find out more.

It is estimated that £2bn of overpaid SDLT was received by HMRC in error in 2018.   You have 12 months from the due date of your SDLT return to reclaim any overpaid SDLT from HMRC, so all is not lost.


SDLT collected by HMRC in 2019


Estimated SDLT overpaid


Refunds issued by HMRC per month

Why is SDLT relief so complex?

SDLT specialist

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 from a specialist should be sought.

stamp duty refunds

Solicitors, lawyers and agents are not tax generally specialists. 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 refunds

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 SDLT 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.

Finally, Contact us for a free assessment on whether you may be eligible for a SDLT refund. We help clients to claim thousands in overpaid SDLT and have successfully generated many 5 figure SDLT refunds for our clients.

If you are a solicitor and need help with your clients we provide much needed support to you and your clients.

Anthony Davies, Founder and Director

PRIMOtax Limited

t: 01293 301989

e: [email protected]


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