Every year many developers overpay their Stamp Duty Land Tax (SDLT) on residential and commercial purchases for a range of reasons, including the misclassification of property or lack of awareness of the exceptions and reliefs available. Often, the unrealistic expectancy of solicitors to be both property and tax experts can leave property developers overpaying their Stamp Duty.
A developer who had purchased a site in London recently approached us to find out if they could make any savings on the Stamp Duty Land Tax they had paid.
The property development
After purchasing an old church in London for £4,300,000, the client developed the site into 27 residential flats with communal areas. Working with their solicitor, they had been advised that the SDLT payable was £204,500.
Often HMRC’s Stamp Duty Land Tax calculator is used as the main tool to calculate SDLT rates, however the tool only gives a guide figure and does not consider a variety of calculations.
Our team at Innovation 4 Business began a full review of the site to assess whether the client had paid the correct amount on completion of the development. Unfortunately, the client’s solicitor did not want their client to engage with a specialist tax adviser and refused to look at our advice. As a result of this, we offered to submit a reclaim on the client’s behalf and they received a refund of £161,500.
The knowledge held by our experienced tax consultants allowed for a streamlined process, allowing the funds to be back with the client within just two months. Our advisers also ensured optimum communication between our business and the client throughout, so that they understood how much they were expecting to receive back and when.
Innovation 4 Business
We can help you navigate your way in these complex arenas. Whatever your situation, we can help find a simple solution for your business, supported by our expert team. We highly value our clients and strive to build long-term relationships, meaning we can support you through future development projects too.
In addition to our tax services, our partnerships with Finance 4 Business, Liquidity Club, Caliber Land and Walker Doble enables us to offer integrated solutions in multiple specialist areas such as land acquisition, finance and new home sales.
How do I know if my property would qualify?
When you are about to purchase a property, there are some key features to look out for, such as:
- Are you purchasing land with the benefit of a planning permission allowing the development and construction of residential housing or units?
- Are you purchasing an office building with permitted development rights for conversion for residential housing or units?
- Are you purchasing commercial property together with residential units or mixed-use land?
Get in touch by calling us on 0121 309 0222 or emailing firstname.lastname@example.org to see what we can do for you.