Have you overpaid on stamp duty?

At Finefair we strive to offer the very perfect services for investors. We have built a strong reputation, particularly for providing the best property management Bromley has to offer. On top of this we always ensure that clients are well informed and able to come to us for advice and support.

One question that has been popping up more and more frequently since changes to stamp duty in 2016 is; how can people tell if they have overpaid previous bills? Sadly there isn’t a single service you can use to determine this. Instead you’ll need to look carefully through your own records and compare them to what you should have paid.

The main reason issues with overpaying stamp duty occurs is because historically conveyancers have calculated the tax. Sadly these individuals may lack the necessary expertise. Generally if you have worked with a solicitor to purchase a property you should have paid the right tax but it can’t help to look just in case.

The most frequent issues arise amongst people who purchased homes after 1st April 2016. This is when the newest stamp duty rules came into place and an additional 3% charge began being levied on buyers who already owned residential property. People may be able to claim the fees back though if the property is their main residence, is used for commercial purposes, or has multiple suites for accommodation.

Buyers have four years to claim a stamp duty refund if they overpaid. If they do not file within this timeframe they lose out on any funds they should be owed. Keep in mind that the timeframe differs slightly if you buy a new home and sell your current main residence. In this case as long as you file a return within 3 years you should get the 3% additional tax back.

To avoid any issues with overpaying stamp duty it is wise to consult a tax expert from the outset. That way you can be clear of the requirements for your unique situation. It is always better to be prepared and pay the right tax than overpay and try to claim it back.

Finefair understands that finances can be the trickiest aspect of purchasing a home but is on hand to help. We can also offer our letting and management services for investors who do purchase buy to rent properties. We are the best for property management Bromley has to offer and will deliver unbeatable standards on every single job.