Stamp Duty Tax Relief
Our service optimises your Stamp Duty Tax Relief claim, helping to maximise your outcome and saving you valuable time, money, and unnecessary stress.
Trusted and compliant specialists
We have established a reputation for excellence and integrity in the Stamp Duty Tax Relief sector. Our clients trust us to handle their claims efficiently, compliantly and ethically, providing them with peace of mind throughout the process.
Managed by experts
Our experienced team of Stamp Duty Tax Relief specialists provides expert guidance to navigate the complexities of the SDLT relief process. We ensure that you understand the eligibility criteria and maximise your claim potential.
Maximise your tax claim
We help our clients to identify all qualifying activities and expenditures, with an aim to maximise their Stamp Duty Tax Relief potential. Our main goal is to ensure you receive the maximum benefits you are entitled to, compliantly.
Number of clients we have helped to successfully claim (k)
Amount RDI has successfully claimed for our clients (£m)
Percentage of clients that use RDI for the next financial year (%)
The trusted experts you need to manage your Stamp Duty Tax Relief claim
At RDI Solutions, we have a proven track record of assisting over 3,000 businesses in successfully claiming over £200 million in government-funded tax incentives through various tax incentive schemes. As a trusted tax incentive specialist, we specialise in helping qualifying businesses of all shapes and sizes, across diverse sectors, navigate the complexities of claiming Stamp Duty Tax Relief.
Stamp Duty Tax Relief Explained
Stamp Duty Land Tax (SDLT) is a tax imposed by HM Revenue and Customs (HMRC) on property transactions in the United Kingdom. It is applicable when the value of the property exceeds certain specific thresholds. However, it's important to note that certain transactions may qualify for reliefs that either reduce the amount of tax to be paid or exempt the buyer from paying any Stamp Duty Land Tax altogether.
These reliefs are designed to provide financial rebates or exemptions in specific circumstances, taking into account various factors such as property type, intended use, and buyer's eligibility. They aim to support certain groups or incentivise certain types of property transactions. The availability of reliefs can vary depending on the specific conditions and regulations set by HMRC.
By qualifying for a specific SDLT tax relief, the buyer may either benefit from a reduced tax liability or be entirely exempt from paying Stamp Duty Land Tax. This can result in significant savings, making property transactions more affordable or financially viable for eligible individuals or organisations.
"Qualifying for SDLT relief can be a game-changer, allowing buyers to save money or even eliminate the need to pay Stamp Duty Land Tax."
Senior Tax Incentive Consultant
What is Stamp Duty
Stamp Duty Tax Relief works as a reduction or exemption from the standard SDLT charges. Typically favouring specific activities such as first-time homebuying, property redevelopment, or transactions involving disadvantaged areas.
What are the key benefits of using our SDLT tax service?
Over 5,000 successful tax relief claims
£200m+ rewarded back to our clients
Time-saving claim specialist claim service
130+ in-house tax experts
Free HMRC enquiry defence as standard
Award-winning customer support
Insufficient specialist experience
Liable to overlook qualifying costs
Basic technical expertise
No enquiry defence as standard
Limited time available to specialist areas
Liable to introduce non-qualifying costs
Basic technical experience
Burden on your business to fulfil the data
Lack of experience in defending HMRC enquiries
Our relationship with HMRC
With extensive experience collaborating with HMRC, the RDI Solutions team actively contributes to the development of best practice guidelines.
On a daily basis, we encourage and handle routine tax relief claim matters, whilst cooperating with HMRC's compliance team to address any potential enquiries.
Our strong working relationship and comprehension of the challenging and ever-changing world of tax relief enable us to engage in meaningful discussions and to effectively resolve our client's claims and enquiries in the most professional and compliant manner.
Your SDLT questions answered
A guide to Stamp Duty Land Tax
Approximately 1 in 4 property purchases in the UK are miscalculated for Stamp Duty, leading to inadvertent overpayment of SDLT.
Fortunately, Stamp Duty Tax Relief provides reductions or exemptions from standard charges, particularly benefitting first-time homebuyers, property redevelopment, and transactions involving disadvantaged areas. This relief aims to make homeownership more affordable and incentivise investments that improve communities in need.
Did you know?
1 in 4 property purchases in the UK are calculated at the wrong Stamp Duty rate, meaning a significant amount of people overpay on SDLT.
A brief history to Stamp Duty Land Tax
Stamp Duty Tax Relief in the UK has evolved over hundreds of years. It originated in 1694 as a tax on legal documents, including property transactions. And then in 2003, the tax code was modernised and replaced with Stamp Duty Land Tax (SDLT), which introduced a sliding scale structure based on property value.
In recent years, the UK government introduced specific SDLT relief for first-time homebuyers. This relief aimed to reduce or eliminate the tax burden on their first property purchase up to a certain threshold. Additionally, in response to the COVID-19 pandemic, a temporary SDLT holiday was implemented in 2020, raising the threshold at which SDLT was payable and providing a tax break for many homebuyers until June 2021.
It's important to be aware that SDLT rates and thresholds can vary between different regions of the UK. For example, Scotland has its own Land and Buildings Transaction Tax (LBTT), while Wales has the Land Transaction Tax (LTT), both of which operate similarly to England's Stamp Duty Land Tax (SDLT) but with different rates and thresholds.
Why does a Stamp Duty overpayment occur?
Every year, a significant number of individuals end up overpaying Stamp Duty Land Tax (SDLT) in the UK due to either misclassifying their property or lacking awareness of available exemptions and reliefs.
Although HMRC's SDLT calculator is widely used to estimate the payable rate, it merely provides a general figure and does not consider the various reliefs or transaction-specific variables.
HMRC's calculator serves as the primary tool for many solicitors, mortgage advisors, and individuals when calculating SDLT rates. However, this reliance results in 1 in 4 calculations being inaccurate. It's important to note that by utilising the available reliefs, it's possible to achieve reductions of up to 80% in Stamp Duty costs.
What types of Stamp Duty Tax Relief can you apply for?
Stamp Duty Land Tax typically offers individuals and businesses three types of relief.
Whilst there are other types of SDLT reliefs available, the main ones are:
1. Multiple Dwellings Relief
Multiple dwellings relief (MDR) is available where a purchase of two or more dwellings is acquired within the same transaction. The result of MDR is that the Stamp Duty payable for each dwelling is calculated on the average price of the dwellings (for example, the total amount is divided by the number of dwellings).
2. Uninhabitable Dwellings Relief
In its general definition, an uninhabitable property is not fit for dwelling (or everyday living). While it's important to note that HMRC does not provide a clear definition for an uninhabitable property, under the Housing Act of 1967 in order for a property to be deemed habitable it must have the requisite facilities to meet basic living needs. Such as a bathroom (for hygiene) and a kitchen or cooking area (for basic living purposes).
3. Mixed-use Relief
Mixed-use relief is an option when acquiring residential property that includes non-residential property. In such cases, the Stamp Duty Land Tax (SDLT) is charged at a lower commercial rate. The maximum commercial SDLT rate is 5%, which is significantly lower than the potential maximum rate of 17% applicable to residential properties.
What are the reliefs and exemptions as defined by HMRC?
HM Revenue and Customs (HMRC) has guidance on SDLT reliefs and we would urge anyone interested to check the link first, and if you are still unsure then simply contact a Stamp Duty Tax Relief expert like RDI Solutions:
Below is a list of the Reliefs and Exemptions as defined within the guidelines set out by HMRC:
building companies buying an individual’s home
employers buying an employee’s house
local authorities making compulsory purchases
property developers providing amenities to communities
companies transferring property to another company
charities buying for charitable purposes
right to buy properties
registered social landlords
property investment funds, for example, Property Authorised Investment Funds (PAIFs) and Co-ownership Authorised Contractual Schemes (CoACSs)
no money or other payment changes hands for a land or property transfer
property is left to you in a will
property is transferred because of divorce or dissolution of a civil partnership
you buy a freehold property for less than £40,000
you buy a new or assigned lease of 7 years or more, as long as the premium is less than £40,000 and the annual rent is less than £1,000
you buy a new or assigned lease of less than 7 years, as long as the amount you pay is less than the residential threshold or non-residential threshold of SDLT
you use alternative property financial arrangements, for example, to comply with Sharia law
If you are not sure whether you qualify, simply get in touch on 0330 133 1856 and one of our helpful and knowledgeable consultants will be able to assist with your questions.
Our typical SDLT clients include:
If you have overpaid Stamp Duty - what type of benefit will you receive and how is it paid back?
Should it be established that you have overpaid SDLT and you are due a benefit from HMRC, you will typically receive your reward in one of three ways, they are as follows:
1. Stamp Duty Land Tax Refund
A Stamp Duty Land Tax refund refers to a situation where a person or entity who has already paid the tax on a property transaction becomes eligible to receive a reimbursement of the amount paid. This typically occurs when certain conditions or circumstances change after the transaction, making the individual or entity eligible for a refund.
2. Stamp Duty Land Tax Exemption
A Stamp Duty Land Tax exemption refers to a situation where a person or entity is entirely relieved from the obligation of paying the tax on a property transaction. In other words, they are exempted from any liability to pay Stamp Duty Land Tax, regardless of the transaction's value or circumstances. Exemptions are usually granted in specific cases outlined by the tax legislation, such as certain types of properties or specific types of buyers.
3. Stamp Duty Land Tax Relief
Stamp Duty Land Tax relief refers to provisions within the tax legislation that allow individuals or entities to receive a reduction or mitigation of the amount of tax they are required to pay on a property transaction. This relief is granted in specific circumstances outlined by the tax legislation, such as purchasing properties for certain purposes (e.g. first-time homebuyers relief) or under specific conditions (e.g. properties with agricultural use relief). The relief reduces the tax liability without necessarily exempting the individual or entity from paying any tax.
In summary, a refund applies to cases where the tax has already been paid and is reimbursed, exemption refers to complete relief from paying the tax, and relief provides a reduction or mitigation of the tax liability without total exemption.
The amount of Stamp Duty owed depends on the property's purchase price, with different tax bands and rates applied to various price ranges.
How much Stamp Duty do you have to pay in the UK?
When purchasing a property, it is crucial to consider the impact of stamp duty on your overall costs, as it can significantly affect your expenses. The specific amount you will be required to pay varies depending on factors such as the property type, whether you are a first-time buyer, and your eligibility for exemptions or reliefs.
As a general reference, individuals moving into a new primary residence, excluding first-time buyers, can anticipate the following stamp duty rates:
Up to £250,000
£250,001 - £925,000
£925,001 - £1.5 million
Above £1.5 million
It is always important to note that these rates above can change. It is best advised to keep up to date with current HMRC guidelines, or, when possible, to consult with an expert Stamp Duty tax specialist such as RDI Solutions.
Stamp Duty for Uninhabitable Property Relief
Stamp Duty adds a significant expense to the financial considerations for homebuyers. Alongside budgeting for deposits, potential renovation costs, and mortgage fees, stamp duty, also known as Stamp Duty Land Tax (SDLT), must be taken into account.
SDLT is a tax imposed on properties and land acquisitions in England and Northern Ireland. If you have recently purchased or are currently in the process of buying a property that could be classified as "uninhabitable," you might be eligible for exemptions from paying stamp duty.
What are the criteria for classifying property as uninhabitable in the UK?
Examples of defects that can class a property as "uninhabitable" are (as outlined by HMRC):
Missing bathroom fittings
Unusable kitchen appliances
Lack of power
Lack of water
Health and safety issues
It's important to note that certain factors can render a property unsuitable for habitation or basic everyday living. However, it's worth keeping in mind that properties purchased for renovation purposes, which are initially deemed habitable, would not be eligible for a stamp duty refund.
Stamp Duty for Multiple Dwellings Relief
Multiple Dwellings Relief (MDR) is a tax relief applicable when purchasing multiple properties in one or several transactions. It applies to various scenarios, such as buying multiple properties in one transaction, transferring properties to a limited company, or a developer purchasing multiple apartments at once. MDR allows for tax relief in these situations.
To understand what constitutes a dwelling, it is generally defined as a building where a single household resides. While there is no fixed definition, HMRC considers it as a building suitable for everyday single household living, including buildings under construction.
To illustrate the concept, an uninhabitable property serves as an example. An uninhabitable property is one that is not suitable for safe and everyday living for a single household.
MDR enables individuals or property developers to pay stamp duty based on the average value of the properties, rather than the total purchase price. This relieves the tax burden and provides flexibility in the stamp duty payment.
What are the criteria for classifying property as eligible for Multiple Dwellings Relief?
Several property types may qualify for Multiple Dwellings Relief (MDR), they are as follows:
Mixed-use properties (for example, a shop with a flat above)
Houses or apartments (flats) bought in one completion/transaction
Subsidiaries (for example, a 'granny annexe')
Please note, in order to be eligible for Multiple Dwellings Relief, it is necessary to purchase two or more properties in the same transaction or through linked transactions. It is important to understand that there are two types of MDR.
Residential MDR is applicable when purchasing 2-5 dwellings in bulk.
On the other hand, if more than 6 properties are purchased or if mixed-use properties are involved, non-residential SDLT rates may apply. It's worth noting that non-residential SDLT rates are generally lower than residential rates.
Stamp Duty for Mixed-use Relief
What are the criteria for classifying property as eligible for Mixed-use Relief?
Similar to Multiple Dwellings Relief (MDR), there are several property types that may qualify for Mixed-use Relief, they are as follows:
Commercial units (for example, a restaurant, a shop, or an office)
Agricultural land that is part of a working farm or used for similar reasons
Property that is not fit for purpose or suitable to live in
Land that is not part of a dwelling's own garden or grounds
A mixed-use property is characterised by the combination of a non-residential property and a place used for dwelling, essentially creating a property that serves both residential and non-residential purposes.
Where this relief is typically classified as non-residential, this means Stamp Duty is payable at a lower commercial rate. The most Stamp Duty one might expect to pay for residential property is 17%, whereas commercial stamp duty is fixed at 5% on the highest end. Therefore by purchasing a mixed-use property, you will have already slashed your payable stamp duty.
What is the time limit to claiming Stamp Duty Tax Relief?
The time limit for claiming Stamp Duty Land Tax Relief is within 4 years from the original date of purchase.
It is crucial to submit the Stamp Duty Tax Relief claim within this time frame to ensure eligibility for the relief. Missing the deadline will result in the loss of the opportunity to claim SDLT. Therefore, it is advisable to proactively monitor and adhere to the four-year time limit when seeking to claim SDLT.
How long does it take to receive funds?
HMRC has a Service Level Agreement (SLA) of 28 days for processing Stamp Duty Land Tax claims, ensuring a timely payout to eligible businesses.
On average, it takes approximately 4-weeks to receive funds from HMRC.