Stamp duty overpayment

stocks1j

Hi all,
I have received a letter from “Wilton Group” regarding the potential that I have over payed on stamp duty, I completed my purchase on 27-05-2020 
and Wilton group are saying that I have potentially over payed by £10,000 (I payed £16,250 stamp duty in total) and I am not a first time buyer. It is apparently a no success no fee claim. My questions relate to the legitimacy of this letter and I’d like to know if I genuinely have a claim for this, has anyone experienced anything similar? I’ve replied to the letter but am yet to hear anything back as of yet.
Thanks,
James

grumiofoundation

Did you overpay stamp duty? 

MWT

SDLT isn't all that confusing, and even if your transaction involved the purchase of multiple properties or mixed residential/non-residential property it is unlikely that your solicitor/conveyancer got their sums wrong.

More likely that this is just another scam aimed at selling you an insurance product to underwrite the costs of your fictitious case.

Proceed with extreme caution and do not sign anything without first talking to the firm you used for the transaction at the time...

stocks1j

grumiofoundation said:

Did you overpay stamp duty? 

I have no idea, that’s my question...from initial thoughts, no, the property was £525k but there are some complexities around stamp duty such as multiple dwelling relief (my house has an annexe)

stocks1j

Some additional information, my house was £525k and has a separate dwelling in which there is potential relief for (an annexe)

MWT

stocks1j said:

Some additional information, my house was £525k and has a separate dwelling in which there is potential relief for (an annexe)

Does the annex have the following features? :

Its own separate entrance?

Its own heating, plumbing and electrical supply, separate from the main house?

Its own bathroom and kitchen facilities?

Is it connected to the main residence or completely detached?

stocks1j

MWT said:

stocks1j said:

Some additional information, my house was £525k and has a separate dwelling in which there is potential relief for (an annexe)

Does the annex have the following features? :

Its own separate entrance?

Its own heating, plumbing and electrical supply, separate from the main house?

Its own bathroom and kitchen facilities?

Is it connected to the main residence or completely detached?

Hi, thanks for your questions, yes I can confirm that it does have all of the features you have noted and that it was originally used as a separate B&B by previous owners.

MWT

Then yes, it looks like you may have a case, but I'd still be inclined to talk to your previous solicitors first and see why they failed to consider the possibility of multiple dwelling relief.

Do also make sure you meet the test to avoid the additional 3% charge for a second property:

The less valuable dwelling must be a part of the same building as the more valuable one (or in the grounds of the more valuable one)

and, the more valuable property must be 2/3 or more of the value (so over £350,000 in your case.

stocks1j

MWT said:

Then yes, it looks like you may have a case, but I'd still be inclined to talk to your previous solicitors first and see why they failed to consider the possibility of multiple dwelling relief.

Do also make sure you meet the test to avoid the additional 3% change for a second property:

The less valuable dwelling must be a part of the same building as the more valuable one (or in the grounds of the more valuable one)

and, the more valuable property must be 2/3 or more of the value (so over £350,000 in your case.

Thanks MWT I have emailed my solicitor too! Thanks for your helpful input!!!

[Deleted User]

If it’s within 12 months you can apply to for a refund of the overpayment anyway if it is relation to MDR. I am sure your solicitor will
help you with that if they have made an error! 

Good luck!

Mrcsmrs

We’re about to buy a similar property and my solicitor seemed to feel that it would be wrong of us to apply for the relief, despite our property meeting all of the criteria I can find. Eventually I gave up arguing with him about it being illegal exploitation of a loophole and called the HMRC SDLT helpline myself. They advised that they felt I was correct and that I could write in to their technical team for a more detailed written reply, so this is what I’ve done. Apparently it’s approximately 40 days to get a reply though. The phone line staff were incredibly helpful though so I can highly recommend calling them for advice.