Stamp Duty Land Tax (SDLT) is a tax levied on property purchases in the UK, and there are instances where buyers might be eligible for a refund. Nevertheless, getting an SDLT refund is not a walk in the park. Making mistakes when applying for a refund must be avoided. Otherwise, they can cause rejection or delay of your refund. Some mistakes can also lead to a complete loss of the refund.
For a stress-free process, avoid the following mistakes while applying for an SDLT refund.
Incorrectly Filling Out the Refund Form
Completing the refund form with the wrong information is another mistake many people make when applying for an SDLT refund. An SDLT refund application needs some legal details. When you provide incorrect or even approximate figures and the wrong property address, HMRC may reject your claim. To be safe, check the information twice or more times to ensure it is correct. It is advisable to outsource a property tax advisory service from a reputable consultant to avoid these mistakes. Consulting a tax consultant or solicitor with skills in SDLT can help you avoid costly blunders.
Misunderstanding Eligibility Criteria
Being a property owner does not automatically qualify you for an SDLT refund. That is where potential owners get it wrong. Not every purchase meets the criteria, and making wrong assumptions about your suitability is quite expensive in terms of time and effort spent. One ought to be very clear with the general and specific conditions for the refund.
Failing to Provide Supporting Documentation
Declaration and supporting evidence may be necessary to back your SDLT refund application. Omitting some material documents, including an SDLT return or proof of overpayment, could result in postponement or refusal of assessment. It is necessary to take some time and read more about the requirements covering the specific type of claim and all the documents you must provide. Also, having well-organized documentation of all your business activities will ensure you give the necessary details.
Not Seeking Professional Advice
Though you may think that dealing with your SDLT refund application alone is cheaper, not seeking professional services is one mistake many people make. SDLT legislation is always quite complicated, and refunding can entail certain legalities that can be rather intricate. However, an ideal way of going about the process is to hire a tax professional solicitor or conveyancer with adequate knowledge of SDLT because this enhances the chances of the claim. They can also pinpoint other problems you must avoid before they occur, saving you time and energy.
Overlooking Changes in Legislation
SDLT rules and legislation can change, affecting your eligibility for a refund or the application process itself. Failure to consider the changes to the law in recent years may result in submitting an application that contravenes the set guidelines. To avoid this, one must know the new SDLT laws. It is advisable to consult a tax consultant to provide relevant property tax advice. That will be very helpful in avoiding any discrepancies with the campus because you will be sure your application meets the most current set of rules and regulations.
Not Following Up on Your Claim
Lastly, one of the biggest mistakes you can make is not following up on your sdlt refunds claim. Therefore, one should always follow their claims. That is particularly so if you have not received your refund in the expected period. Following up will assist you to resolve any problems that may arise early enough and get your refund as soon as possible.
Conclusion
While applying for an SDLT refund, you must avoid blunders such as failure to adhere to deadlines, filing wrong forms, and omission of relevant documents. To improve the chances of being granted a refund, one needs to appreciate the conditions that make one eligible for the refund, know the recent legislation changes, consult a professional, and communicate effectively with HMRC. Taking these precautions will enable you to receive any refund due to you on time with minimal fuss.
