SDLT Refund Claims Under Scrutiny

HMRC Crackdown on Dubious SDLT Refund Schemes

HMRC has begun cracking down on bogus and misrepresented Stamp Duty Land Tax (SDLT) refund claims. Many property buyers and investors have been approached by unregulated agents promising thousands in quick refunds. These promises are often based on misleading interpretations of SDLT rules.

An official statement was recently published by HMRC stating that “many of these claims are incorrect and do not qualify for a refund.” You can read the full statement released by HMRC here.

Increase In Ineligible SDLT Refund Claims

A growing number of incorrect SDLT refund claims are being filed. These often relate to misclassifications such as treating standard residential homes as “mixed-use” properties or applying tax reliefs inappropriately.

In many cases, claims are filed by unregulated “no-win, no-fee” agents who lack the necessary knowledge on the subject. As a result, there has been a surge in invalid claims, prompting HMRC to investigate suspected incorrect refund claims.

SDLT Compliance Checks

Those who originally thought they’d secured a legitimate refund are now receiving compliance check letters, repayment demands, and sometimes even penalties. In serious cases, these disputes may escalate to tribunal or litigation.

If you’ve received a refund facilitated by a third-party agent, submitted a claim without detailed legal support, or are currently considering a claim, you may be at risk. Even individuals who believed they had a valid reason for reclaiming SDLT could be vulnerable if the claim was not backed by legitimate reasoning or sufficient supporting evidence.

You may also be impacted if you’ve recently received a letter from HMRC, are under review, or are unsure whether your property qualifies for a refund under the relevant legislation.

Could You Be at Risk?

• Have you received an SDLT refund from a third-party agent?
• Are you considering making a refund claim?
• Have you received HMRC letter or notice of compliance check?
• Have you used a “no-win, no-fee” tax recovery agent?

If you answered yes to any of the above, it is important to seek advice from a trusted SDLT expert. Even if your original claim appeared legitimate, it’s crucial to get a second opinion from a qualified advisor.

What You Should Do Now

If you’re considering an SDLT refund or are already involved in a dispute, it is critical to seek qualified, independent advice. Do not respond to HMRC directly without understanding your position or the risks involved.

We recommend undertaking an SDLT risk assessment before submitting any claim. If you’re already in the middle of a compliance check, seeking professional representation can significantly help in resolving the matter efficiently.

Speak to a Trusted SDLT Advisor

Whether you need a second opinion on a pending claim, help responding to an HMRC letter, or full representation during a dispute, our specialist team is here to assist.

We provide fixed-fee SDLT audits, tax assessments on refund eligibility, and representation in compliance checks.

Book a free initial consultation with our team today to get clear, trusted advice.

Find out more on HMRCs Crackdown on SDLT refund Claims and how we can help here.