Landlords could claim £27,000 stamp duty reimbursement after changes made to tax rules

By Carlin Peton

HM Revenue and Customs have settled confusions on new rules in relation to stamp duty payments, landlords may be lucky enough to receive tens of thousands of pounds. 

If you are an investor buying a ‘mixed-use’ building, (residential and commercial property in one building) you will no longer be forced to pay a three percentage point surcharge. This is generally exercised on purchases of buy-to-let properties and second homes.

It has come to the attention of the government that many landlords have paid in excess and could now claim around £27,000. This may now increase future purchases of mixed-use buildings.

Landlords included in this category can make a claim by getting in touch with the tax authority, according to Sean Randall, of Blick Rothenberg – a tax advisory firm. He went on to explain that HMRC updated their internal guidance manual, so as to ensure that the tax will be calculated without the use of surcharge, including for purchases made by companies. 

Stamp duty has been coined as Britain’s most complicated tax, as there are different rates for the various types of purchases. There are also many loopholes that have been abused. 

The first £150,000 for non-residential properties of the property’s value is taxed at zero. The next £100,000 is taxed at 2pc. Any value above £250,000 subject to a 5pc stamp duty rate. Landlords can now save £27,000. Landlords will be able to claim on multiple buildings when they purchase several properties. Instead of being taxed on the total £1.35m purchase price for residential properties, the total amount paid will be divided by the number of dwellings. Then they will work out the tax due and times it by four, which will reduce the tax bill. 

If you have purchased a mixed-use property within the last 4 years, call our specialist legal team to find out whether we can help you reclaim stamp duty overpayments you may have made on 0203 058 3365 or email enquiries.sa@ackroydlegal.com