Stamp Duty - should landlords review accuracy of tax?

A long-standing tax consultancy has raised the spectre of too much Stamp Duty ha wing been paid thanks to mistakes made by HMRC.

Cornerstone Tax claims that it has reclaimed £30m for clients from the Revenue over the last three years alone and believes there could be more to come as more than six out of 10 buyers have never considered whether there were errors to be investigated. 

No Stamp Duty is due on a property purchase of up to £250,000 or £425,000 for first-time buyers. Five per cent of the property price is charged for prices on main residences between £250,001 and £925,000 plus eight per cent for additional properties.

If the buying permutations are added together the top rate of the tax is now 12 per cent for a main residence and 17 per cent for foreign purchasers buying a second home in England or Northern Ireland - Wales and Scotland do not have Stamp Duty but other purchase taxes with different rates.

Cornerstone says it’s identified three commonly overlooked Stamp Duty reliefs, exemptions and misconceptions that could result in overpaying on Stamp Duty.

And chairman David Hannah adds: “By conducting a thorough analysis, seeking professional advice, and understanding the applicable regulations, you can minimise the risk of overpaying Stamp Duty Land Tax. However, if an overpayment does occur, initiating a review promptly allows you to rectify the situation, gather evidence, and pursue appropriate actions to claim a refund or make adjustments as required.” 

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