HMRC stamp duty errors ‘costing buyers millions’
Cornerstone Tax says most homebuyers assume they have paid the correct amount of SDLT when often they have not.
Millions of pounds are being overpaid by property buyers due to Stamp Duty mistakes.
That’s the claim from property tax specialist firm Cornerstone, which says it has reclaimed £30 million for clients from HMRC over the last three years.
Most homeowners (61%) have never considered the possibility of errors in the Stamp Duty they paid, Cornerstone says.
No Stamp Duty is due on a property purchase of up to £250,000 or £425,000 for first-time buyers, whilst 5% of the property price is charged for prices on main residences between £250,001-£925,000 and 8% for additional properties.
Eye-watering
The top rate of the tax now stands at an eye-watering 12% for a main residence and 17% for foreign purchasers buying a second home in England or Northern Ireland.
Whilst this tax is similar in Scotland and Wales, they have their own distinct rates that should be reviewed separately.
Amidst an ongoing cost of living crisis where many are stretching their finances to the limit to get on the property ladder, David Hannah, chairman of Cornerstone Group International, highlights the importance of enlisting expert advice to avoid overpaying thousands of pounds in the process.
Cornerstone Tax 2020 has identified three commonly overlooked Stamp Duty reliefs, exemptions and misconceptions that could result in overpaying on Stamp Duty.
“By conducting a thorough analysis, seeking professional advice, and understanding the applicable regulations, you can minimise the risk of overpaying SDLT.
“However, if an overpayment does occur, initiating a review promptly allows you to rectify the situation, gather evidence, and pursue appropriate actions to claim a refund or make adjustments as required,” Cornerstone says.
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