- February 14, 2023
- Posted by: Stephen Coleclough
- Category: Tax
Have you or your clients paid SDLT
- on a mixed use portfolio
- claimed Multiple Dwellings Relief (MDR) and
- also paid the additional 3% SDLT for dwellings?
If so, then you have overpaid SDLT. If this was in the last four years, you may have a valid claim.
However, you may only have days in which to make a claim for repayment of overpaid SDLT.
We strongly advise that these claims are made before 15th March 2023. We have already recovered over £250,000 of overpaid SDLT for clients.
If someone buys a number of dwellings, as part of a mixed use portfolio, then they can claim MDR which reduces the rate of SDLT to that applicable to the average price of those dwellings.
In 2015, the additional 3% charge was introduced for corporate purchasers or other purchasers who already owned a dwelling. This 3% was due in addition to the rate applicable after MDR applied.
In Autumn 2021, HMRC lost a case on this point. and subsequently issued a consultation in November 2021 which closed February 2022. Nothing has happened since then. It is not unknown for HMRC to publish the results of a consultation together with new laws. The next obvious day to do that is the Spring Statement (Budget) which is on 15th March. HMRC could also block any potential claims for the last four years.
Possible change on 15th March (Budget day) for additional 3% SDLT on mixed use properties?
14th March Deadline for overpayment claims.
Other possible claims:
- Developer buys, refurbishes and sells
- Relocation purchases
- Probate sales
- One dwelling or two?
- Mixed use (or not)
- Non-UK houses and 3%
- Use of UK trust structures
This note assumes that the reader is either a client of this firm or an adviser to such a client and is, of course, no substitute for advice based on your personal facts and circumstances. No liability is accepted for reliance by any person upon any statement made in this paper.