Property developers and landlords urged to seek SDLT rebate advice

News Article

Property developers and landlords in the UK could be due stamp duty rebates on additional homes following a recent tax tribunal verdict.

Experts are urging those affected to seek professional advice regarding the 3 per cent Stamp Duty Land Tax (SDLT) on additional property.

The dispute, between Paul and Nikki Bewley and HM Revenue & Customs (HMRC) arose after they purchased a run-down bungalow in Weston-Super-Mare, which was not habitable at the time of purchase.

Mr and Mrs Bewley intended to demolish the bungalow and build a property on the land. Planning permission had already been granted, and the bungalow had been left unoccupied for three years prior to their purchase.

HMRC disputed the case but the tribunal ruled against them, stating that the surcharge was only applicable if the home was suitable to live in immediately.

Upon conclusion of the case, the Tribunal ruled: “We have no hesitation that, in this case, the bungalow was not suitable for use as a dwelling.”

The judgment could have significant implications for the housing market, with property developers and landlords who have paid SDLT on uninhabitable properties, possibly having paid an incorrect level of tax. This could mean that many are eligible to reclaim the tax they previously paid.

Adam Davis, a Partner with Partner who specialises in disputes, said: “Landlords, property developers and, indeed, any individuals who purchased a property that was uninhabitable at the time of purchase should seek advice as they may be due a rebate on the stamp duty paid.”

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