What Are Your Options If You Think You Overpaid Stamp Duty?


When you purchase a property, you have to pay Stamp Duty Land Tax (SDLT) commonly known as stamp duty.  However, if you purchase two properties in one transaction, you may have been applicable for Multiple Dwellings Relief (“MDR”).  This could reduce the stamp duty due.  Many solicitors are not aware of this relief and fail to notify clients of it.

What Is MDR? 

MDR was introduced in July 2011 as a mechanism to boost residential property transactions by reducing the amount of stamp duty payable on multiple residential purchases.

MDR affects the rate of stamp duty chargeable on multiple property transactions. Stamp duty is calculated using the average value of the properties combined and payable by reference to these average values which often results in less stamp duty payable as opposed to combining the total value of the properties.

In order to claim MDR, the properties being purchased in the same transaction must be separate ‘dwellings’

How And When To Claim MDR

In order to claim MDR, the properties being purchased in the same transaction must be separate ‘dwellings’. In some cases, this has caused confusion where there is a single building that has been subdivided or a granny annexe at the end of the garden.

The meaning of ‘separate dwelling’ was unclear until relatively recently and since HMRC published their guidance confirming that a ‘separate dwelling’; “takes its everyday meaning; that is a building, or a part of a building that affords those who use it the facilities required for day-to-day private domestic existence”. Therefore, conveyancing solicitors may have missed the relevance of a separate dwelling being within one property transaction, as a second dwelling may be in the grounds of the main property.

What Are Your Options If You Think You’ve Over Paid Stamp Duty?

There is a 12-month window to submit any stamp duty amendments to HMRC after the date of completion.

Where the 12-month time limit for amending a land transaction return has expired, the only recourse would be to bring a claim against the conveyancer who acted on the transaction.

Conveyancers owe a duty of care to their clients as part of your engagement or retainer with the law firm.

If you believe you may have overpaid stamp duty due to not claiming applicable MDR please get in touch.  We can help you reclaim the money you have overpaid on a ‘no win no fee’ basis  – you won’t pay anything unless we are successful

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