How Property Buyers Often Overpay on Stamp Duty (And How to Reclaim It)

Stamp Duty Land Tax (SDLT) is an unavoidable part of buying property, but what many buyers don't realise is they may have paid more than they needed to.

This is especially true for property developers, investors, and those purchasing anything outside the standard residential home. Complex transactions, multiple units, or mixed-use properties can easily lead to SDLT being calculated incorrectly, often at a significant cost.

At SCA Tax, we specialise in uncovering these overpayments and helping buyers, investors, and developers reclaim what they're owed. If you’ve completed a purchase in the last four years, it could be well worth reviewing.

Here's why stamp duty overpayments happen so often, and what you can do about it.

Why So Many Buyers and Developers Overpay Stamp Duty

Stamp duty law isn't straightforward, especially when transactions involve land, multiple dwellings, commercial elements, or development sites. Many opportunities for relief go unnoticed at the time of purchase, leaving thousands of pounds unnecessarily handed over to HMRC.

Here are the key reasons overpayments happen:

1. Missed Reliefs and Exemptions

The SDLT system allows for several valuable reliefs — but they’re often missed, especially in development or investment scenarios.
 For example:

• Multiple Dwellings Relief (MDR) is highly relevant when buying properties with annexes, blocks of flats, or sites intended for split occupation.
• Mixed-Use Property Relief can apply to sites or units that combine commercial and residential elements, significantly reducing the SDLT rate.
• First-Time Buyer Relief (updated April 2025) is available for individuals but often overlooked when structuring purchases.

Many developers unintentionally overpay simply because these reliefs weren't properly applied - and the opportunity for a refund is still open.

2. Incorrect Property Classification

The nature of the property significantly affects the SDLT rate:

• A portfolio of flats could qualify for Multiple Dwellings Relief.
• A building with land used commercially could benefit from non-residential rates.
• Certain probate sales or chain break purchases might attract specific concessions.

Even experienced conveyancers sometimes categorise a property too narrowly, leading to higher SDLT charges, particularly when faced with unusual sites, land, or mixed-use transactions.

3. Over-Reliance on Standard Calculators

Most SDLT calculators online are built for simple, single-home purchases. They don’t account for:

• Portfolio purchases
• Development land with planning potential
• Mixed residential and commercial sites
• Chain-break purchases or probate transactions

For developers, these nuances are critical. Relying on a basic calculator or "tick box" approach often results in substantial overpayment.

How to Reclaim Overpaid Stamp Duty

The good news? If you’ve overpaid SDLT, you can usually reclaim it, provided the purchase completed within the last four years.

Here’s the simple process:

Step 1: Free Professional Review

At SCA Tax, we offer a no-obligation assessment. We'll review your transaction details - whether it was a residential property, a development site, or a mixed portfolio - and check for any missed reliefs or miscalculations.

Step 2: Submit a Refund Claim to HMRC

If an overpayment is found, our team prepares and files a detailed claim directly with HMRC. We handle all the technical work - no stress, no hassle for you.

Step 3: Receive Your Refund

Once approved, HMRC issues the refund directly to you. Many of our developer and investor clients are surprised by the size of the refunds we recover, especially on larger or more complex purchases.

Why Developers and Investors Work with SCA Tax

• Specialist knowledge: we understand the complexity of development and investment transactions
• No-win, no-fee structure: if we don't recover a refund, you owe nothing
• Full-service claims management: we liaise with HMRC and manage the process end to end

Our goal is simple: maximise your refund, minimise your effort.

Think You Might Be Owed Money?

If you’ve bought property, particularly land, multiple units, mixed-use sites, or anything outside a straightforward residential home, it’s worth checking.

Check Your Eligibility Now, or speak to one of our SDLT specialists today

SCA Tax: Experts in reclaiming overpaid Stamp Duty Land Tax for property buyers, investors, and developers.