FWT Finance

Menu
Call Us Now!
Menu

Check Eligibility

Did you know...

You could be owed money for your Stamp Duty!

First Legal Solicitors Limited work with a team of legal experts, who are dealing with claims like yours on behalf of other property owners. Your claim will be assessed by one of our experts and if you qualify, you will then be passed to a dedicated handler, so you always have someone to contact.

Stamp Duty Land Tax (Stamp Duty) is a tax levied on buyers of land, property, or property rights (such as leases). It applies when you purchase property or land, but not every transaction is subject to Stamp Duty. The rules governing when and how much you must pay are complex, with the following six key factors influencing your liability:

  • Whether the property is residential or non-residential
  • The purchase price of the land or property
  • Your status as an individual, company, or partnership
  • Your residency status (UK resident or non-resident)
  • The purpose of the purchase
  • Whether the purchase involves related transactions

Stamp Duty is typically due within 30 days of completing your property or land purchase. However, if you make payments before completion or use a non-traditional purchase agreement, you may need to pay Stamp Duty in installments. To make the payment, you must submit a land transaction return to HMRC, often along with a letter to explain any unusual circumstances not covered by the forms. Your solicitor usually handles this process as part of the transaction and makes the payment to HMRC on your behalf.

In 2003, the government restructured how land purchases were taxed, introducing Stamp Duty Land Tax (SDLT), which applies solely to property or land buyers. The main reasons for this change were:

  1. Stamp duty was too easy to avoid – SDLT is more difficult to legally evade.
  2. Stamp duty was complicated and often unfair – While SDLT remains complex, it’s designed to be slightly fairer, though overpayments are still common.

There are ways to reduce your Stamp Duty liability, such as applying for reliefs or using exemptions. Your conveyancing solicitor should guide you through this process. However, in most cases where Stamp Duty applies, it must be paid.

HMRC estimates that over £2 billion in Stamp Duty is overpaid each year. These overpayments often occur due to mistakes made by professionals when filing returns on your behalf. The criteria for Stamp Duty are complex, and errors can happen when entering data into the HMRC calculator. If it can be proven that an overpayment was made, a claim for repayment can be initiated.