Overpaying Stamp Duty often happens these days because of the enormous complexity of the Stamp Duty land tax (SDLT) rules. For example, there are five different tables of rates of Stamp Duty and some extremely complicated reliefs such as Multiple Dwellings Relief and the relief for “granny annexes” within the Stamp Duty 3% surcharge for second homes.
There is also a great deal of uncertainty as to what a “dwelling” is for SDLT and when to classify a property as mixed residential and non-residential use. All of these factors affect the correct rate of Stamp Duty tax paid, and conveyancers often err on the side of caution and advise their clients to pay higher rates of SDLT, when on closer inspection this turns out to be too much.