UK Property developers and landlords may be due stamp duty rebates over uninhabitable properties

Landlords and property developers 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 case in question, between Paul and Nikki Bewley and HM Revenue & Customs (HMRC), came after they purchased a run-down bungalow in Weston-Super-Mare, which was not habitable at the time of 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.

The tribunal said upon the conclusion of the case: “We have no hesitation, that, in this case, the bungalow was not suitable for use as a dwelling.”

This result could have significant implications for the housing market, with people who have paid SDLT on uninhabitable properties similar to this case possibly paying an incorrect level of tax. This may mean that many are eligible to reclaim the tax they previously paid.

The specifics of the case were that Paul and Nikki Bewley intended on demolishing 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.

Experts are now urging Landlords, property developers and anyone else who may have purchased a property that was uninhabitable at the time of purchase to seek advice as they may be due a rebate on the stamp duty paid.