Stamp Duty FAQs

Who are FWT Finance?
FWT Finance collaborates with a team of legal experts who handle claims like yours. One of our specialists will assess your claim, and if you qualify, you’ll be assigned a dedicated handler to guide you through the process and provide ongoing support.

What is Stamp Duty Land Tax (SDLT)?
Stamp Duty Land Tax (SDLT) is a tax on buyers of property, land, or certain property rights (such as leases). Not all purchases are subject to SDLT, and the rules governing when and how much you pay are complex. Factors that affect SDLT liability include:

• Whether the property is commercial or residential
• The condition of the property at the time of purchase (e.g., uninhabitable)
• The purchase price
• Your status as an individual, company, or partnership
• Your residency status (UK or non-resident)
• The reason for purchasing the property
• Any related transactions involved

When and How Do You Pay?
Stamp Duty must typically be paid within 14 days of completing a property or land purchase. If any part of the payment is made before completion or if a non-traditional purchase agreement is used, the tax may need to be paid in installments. You’ll need to submit a land transaction return to HMRC, which is usually handled by your solicitor, who will also make the payment on your behalf.

Why Do You Pay Stamp Duty?
In 2003, the government introduced SDLT to replace the older stamp duty system. The two primary reasons were:

1. Stamp duty was easy to avoid, whereas SDLT is harder to legally bypass.
2. Stamp duty was complex and sometimes unfair, though SDLT remains complicated, it’s generally seen as slightly fairer when correctly applied.

Can You Avoid Paying Stamp Duty?
While SDLT must be paid on qualifying transactions, certain reliefs and exemptions can reduce the amount owed. Your conveyancing solicitor should guide you on available reliefs, but in general, if SDLT applies to a transaction, it must be paid.

Who is Eligible for a Refund?
HMRC estimates that over £2 billion in SDLT is overpaid each year. Overpayments often occur due to mistakes made by conveyancing solicitors when filing returns or misunderstandings of SDLT rules. If it’s proven that you overpaid SDLT, you can submit a claim for a refund from HMRC, or in cases where the deadline has passed, pursue compensation from your solicitor if negligence was involved.

Is There a Deadline for Stamp Duty Refund Claims?
Yes. Typically, you must submit your claim within 12 months and 14 days of paying the SDLT. In rare cases, this period may extend up to 4 years and 14 days. If you miss the HMRC deadline, you can file a court claim against the conveyancing solicitor if their negligence caused the overpayment. We can assist with either option!