Are you one of the individuals trying to look for a solution to an overpaid stamp duty land tax refund? Since there is a complex set of rules associated with stamp duty land tax, overpaying is a common mistake among payers. People find it hard to understand the complexity and uncertainty of identifying whether their property is classified as non-residential or mixed residential.
Due to these reasons, the accurate rate of paying the stamp duty land tax is hard to identify and mistakes are made in the process. The clients are then misguided to pay the heavy-duty tax which is not even the correct amount for the required tax. In case the investigation comes into such scenarios, the whole process along with the rates turned out to be too high to deal with.
If you find yourself stuck in such a case, we have got you covered here. As we have covered the basic knowledge of Stamp Duty Land Tax refund along with the details of how to make a claim and the deadline for the stamp duty refund? Let’s get started with a discussion of getting your SDLT refund.
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How Can You Get Your Stamp Duty Land Tax Refund?
In a professional’s experience, it takes about a month or a little more time to get the refund because this is the normal time limit that the issuance of a refund is done. In some cases where, the involvement of the claim firms, it might take a little longer than usual. This is because the firm gets into its investigation process to check if the claim is genuine or not. This is to avoid any dodge factors involved in the claim matter.
When HMRC decides to issue the refund promptly, they still have an investigation to check the details are matching to the original details and that no chances of fraud are involved. IF HMRC finds something doubtful or wrong in the process of investigation, they will immediately order to repay the amount of refund.
For further calculations relevant to this, you can even take help from the online calculator of HMRC. SDLT calculator is a helpful online tool, however, this does not work on calculations of the exemptions and reliefs. Multi-dwelling relief is one such example.
The Process OF Making A Claim?
In the case you aim to claim the SDLT refund, you need to know the required details to complete the process successfully. As per the instruction of HMRC, you need to get the following details confirmed and attached with the documents. You should initiate the process by writing to Stamp Duty Land Tax Office and attaching the following listed details:
- If you have an appropriate contract for the transaction of the land.
- You need to revise and recheck the confirmed amount that you are going to claim the refund.
- The wrong parts of the SDLT need to be attached for a clear idea.
- The valid reason that has made you think that you have overpaid the tax.
- You are required to attach a copy of the original SDLT
- Your UTR number
- Any instrument that you think has affected the payments, lease document, or transfer document are a few examples to attach in this part.
You need to ensure to make the claim process is seamless and error-free. This will lead to a successful refund of the amount that you think you have overpaid because of an error in the documentation.
Deadline for Stamp Duty Land Tax Refund
People are often confused about the basic rules relevant to SDLT. The common and important rule to keep in serious consideration is that you can not claim 12 months duration of the filing date for the stamp duty tax. In some exceptional cases, however, you are allowed to reach out to HMRC after four years and this is the maximum limit after the transaction.
In case, an individual decides to sell his property (the newly purchased residency) before the time duration of four years, you will still have the opportunity to make your refund claim for one complete year. In a few cases, we have observed that people are running out of time to claim a refund. You still have the grounds to make a claim successfully, however, this is a complex situation and it is advisable to look for a professional’s help in this regard.
Sometimes, it takes quite a long for a person to identify that he has overpaid the stamp duty tax. In such a scenario, you are normally given three years right from the day when you aim to inform HMRC about the overpayment.
The Bottom Line
Now that you have gathered a fair amount of information about stamp duty land tax refund, we can bring the discussion towards wrapping up now. If you are stuck in giving an extra significant payment, it is going to be a time-consuming and complex process to identify where exactly you went wrong in the process. And then making a claim about the refund just with the required details as mentioned above.
However, it is valuable only when you are sure of the mistakes you have made and have arranged everything you need to claim the refund. This will make you think that you have solid grounds to claim the SDLT refund. Otherwise, you can seek an expert’s help in the process to ensure the process is done professionally.
Disclaimer: The information about stamp duty land tax refund provided in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.