HMRC may owe you a Stamp Duty Refund if you purchased an uninhabitable home.
If you’ve purchased a property with defects within the past four years, you may have overpaid thousands of pounds in Stamp Duty.
Stamp Duty refund for an uninhabitable home
In 2019, a case known as ‘The Bewley Case’ (P N Bewley Ltd v HMRC [2019] TC6951) was heard by a First Tier Tribunal. This case established a new interpretation and legal precedent regarding Stamp Duty liability. Bewley successfully argued that due to substantial defects (such as lack of heating system, asbestos, and defective flooring) present at the time of purchase, he rightfully paid the lower non-residential rate of stamp duty instead of the higher residential rate.
The Tribunal determined that if a residential property is unsuitable for use as a dwelling, the lower non-residential rate of stamp duty can be applied. We can pursue claims based on various defects, including but not limited to:
- Defective or lack of heating system
- Significant dampness, mold, or rot
- Structural issues such as subsidence or rotten joists
- Fire damage
- Medium to high risk of asbestos presence
In a recent First Tier Tribunal case, Mudan v HMRC [2023] TC/2022/02868, it was further confirmed that significant defects can render a property unsuitable for use as a dwelling.
If you have purchased a residential property that suffered from any of the aforementioned defects or other substantial defects, we may be able to assist you in reclaiming a stamp duty refund.
Stamp Duty Land Tax
You may be eligible to reclaim Stamp Duty Land Tax (SDLT).
Stamp Duty Refunds Process
Eligibility Check
To claim, you must have bought a property or 2nd home within the last 4 years which had defects/issues.
Send Documentation
We will ask you to send us your SDLT documentation and any supporting evidence to proceed with your claim
Claim Submission
We’ll collect information from you about your property, and assess the eligibility of your claim.
Receive your Stamp Duty refund
On the successful completion of your case you will receive your refund from HMRC
To qualify for an SDLT refund, your property must meet the following criteria:
- The property must be a buy-to-let or second home
- The property must have been purchased within the last four years.
- The property must have had qualifying defects at the time of purchase.
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