Stamp duty refunds for uninhabitable properties

Uninhabitable 2nd home SDLT refunds

Stamp Duty Rebates have been helping property developers and landlords recover thousands of pounds in overpaid stamp duty on uninhabitable properties over the past year. In a landmark tribunal last year, it was determined that properties not immediately habitable at the time of completion did not qualify as a "dwelling" and therefore not subject to the three percent "second home surcharge." Stamp Duty Rebates has since recovered thousands on behalf of its clients by reclaiming stamp duty paid on properties that should not have been taxed.

But what exactly makes a property uninhabitable in the UK?

There is a large list of factors that determine if a property should be defined as uninhabitable which is not limited to but includes:

• Glass in doors, screens, windows, etc, is not toughened or laminated in accordance with current Health and Safety requirements (Building Regulations).
• Flats lacking ‘½ hour fire check’ rated doors where required by Building Regulations.
• All or any staircases not possessing appropriate balustrades or handrails that comply with the Building Regulations and/or are in an unsafe condition.
• A kitchen without a minimum of one work top length of 900mm or a minimum of 300mm of tiling above work surfaces and above the cooker (or suitable alternative).
• A Cooker space sited behind a door so as to become a Health and Safety issue.
• A minimum appliance space for a washing machine and refrigerator, with appropriate plumbing and electrics.
• A refrigerator space sited next to a cooker.
• The presence of asbestos that would cause a direct and immediate Health and Safety risk.
• The presence of any significant subsidence, significant structural movement or structural instability (as demonstrated by a structural engineers report).
• An SFA without a fully working heating system (between September and April) or year round when a vulnerable person is present.
• An SFA without any means to heat water (hot water system).
• An SFA that cannot be made secure. This applies to any external door (including any patio or french doors) and any ground floor window.
• Major internal disruption such as a collapsed ceiling
• Lack of one or more utilities: water, gas (including LPG), electricity.
• Major Health and Safety issue(s) or environmental factor(s) that would cause a direct and immediate risk to the occupants.
• The presence of a significant damp or mould problem likely to cause an immediate health risk to the Occupants.
• A significant hygiene problem with the SFA that poses a Health and Safety issue.
• The presence of a significant roof leak causing water to penetrate into the property.
• The electrical system is in an unsafe condition.
• On move-in, a property which has a coin/token operated gas or electric meter.

To determine if a property is uninhabitable in the UK, there are several factors to consider, including the presence of asbestos, structural issues, and a lack of necessary utilities. If you have paid stamp duty on an uninhabitable property, Stamp Duty Rebates team can assess your eligibility for a rebate. Landlords and property developers are encouraged to stay informed about the latest guidance and understand the condition of their properties when submitting stamp duty land tax. If you want to find out if you're eligible for a stamp duty rebate or want to know what this means for your property portfolio, please contact us