personal finance

Have you overpaid Stamp Duty Land Tax? Some buyers could get refund – do you qualify?


From the deposit for a mortgage to moving costs, buying a new house can be expensive. On top of that, buyers will need to pay Stamp Duty Land Tax (SDLT) if their property or land is over a certain price in England and Northern Ireland – unless they qualify for relief and don’t need to pay the tax.

First-time buyers can get SDLT relief for first-time buyers.

This means that if the buyer is purchasing their first home, they can get a discount meaning they could pay less or no tax.

This is provided they completed the purchase on or after November 22, 2017, the purchase price is £500,000 or less, and all of the buyers involved in the purchase are first-time buyers.

In this situation, buyers will pay no SDLT on the first £300,000 of the residential property.

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If the property value total is between £300,000 up to £500,000, then the buyer will then pay five percent on the remainder up to this upper limit.

It’s not possible to claim the relief if the purchase price is more than £500,000, and first-time buyers would in this case instead have to pay the standard rates.

First time buyers of shared ownership properties

If a person bought a shared ownership property on or after November 22 2017 but before October 29 2018 and paid SDLT, then they can claim a refund of the tax if they would’ve qualified for the relief.

The relief applies for first-time buyers of a shared ownership property for purchases made on or after November 22, 2017, when they intend to occupy the property as their main residence, and the market value of the shared ownership property is £500,000 or less.

Stamp Duty Land Tax Residential property rates

When purchasing a residential property, SDLT is usually paid on increasing portions of the property price above £125,000.

It’s possible to use a calculator in order to work out how much a person will pay.

For those who have bought a home before, the SDLT rates increase on each portion of the property or lease premium or transfer value.

Up to £125,000, the rate is zero, but this increase to two percent on the subsequent £125,000 – meaning the portion from £125,001 to £250,000.

Between £250,0001 to £925,000 (so the next £675,000), the SDLT rate is five percent.

On the next £575,000 (the portion from £925,001 to £1.5 million), a 10 percent rate is applied.

Any remaining amount above £1.5 million has a 12 percent SDLT rate.



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