If you have paid the additional Stamp Duty Land Tax (SDLT) on the purchase of a dilapidated property you could be due a refund from HMRC.
The government introduced SDLT surcharges on 1st April 2016 for individuals purchasing a second residential property, or when a residential property is purchased by a limited company.
These measures were supposed to discourage individuals from purchasing additional residential properties and support the housing market; however tribunal decision in the case of P N Bewley Ltd V HMRC  established that an SDLT surcharge is not payable where a property is not habitable at the time of purchase.
Here is our quick and easy summary of the case; however, you can read the full tribunal decision here.
If you want to claim a tax rebate or exemption on the above basis, HMRC are likely to want to see evidence in relation to the condition of the property.
HMRC will want to see evidence of the properties condition prior to and at the time of the sale (transaction) to ensure that the property has not been damaged on purpose for tax avoidance purposes.
If you are purchasing a dilapidated property, it is recommended to try to get as much evidence as possible, as close as possible to the date of the purchase and before any work has started.
If you would like assistance with filing your SDLT return, claiming an SDLT rebate or exemption please contact us on firstname.lastname@example.org.
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