The Governments online stamp duty calculator is getting their sums wrong. Yes! this is true. Did you know that thousands of people have over paid Stamp Duty Land Tax.
On residential and commercial property purchases if they have been misclassified, they could have been charged more stamp duty tax than they should have. Lack of knowledge for most of us regards to the tax system leaves a lot of buyers out of pocket. How did this happen and who is to blame?
HM Revenue and Customs software system does not recognise stamp duty discounts worth £1,000’s. For example. If a buyer has a granny annexe, a commercial building or farmland attached to their property. This could be miscalculated as the online system cannot recognise discounts.
HMRC are dealing with many cases of around 900 per month and one in six transactions have been calculated wrong and refunds are due or have been paid in England and Wales.
The HMRC say that the “online calculator“ is meant as a guide only and not a final figure. But Solicitors dealing with purchases have that they frequently use the online calculator. The online system does not consider mixed-use properties.
One client bought a house with a field for £1 million and the stamp duty calculator charged was £43,750. They should have only paid £39,500 as they should have been given a discount on the land as the field was rented by a farmer.
A buyer paid £30,000 in stamp duty for a property with an annexe and as this was an exemption, he should have only been paid £10,000. £20,000 over is a lot of money for some people to find.
Additional homes. You could claim back the extra stamp duty if you sell your main home within three years of buying the second one as the additional home is now your main home. Certain rules apply so you must check with HMRC to check you are eligible to claim.
Looking to save £1,000’s contact Gary Taylor at GBP Estates for more details.
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