Stamp Duty Land Tax (SDLT) Refund Claims

New homeowners warned over tax refund claims

Warning Issued Against Rogue Agents Making Speculative Stamp Duty Land Tax (SDLT) Refund Claims.

Prospective homeowners are being cautioned about unsolicited calls from unscrupulous tax repayment agents who encourage them to make speculative claims for Stamp Duty Land Tax (SDLT) refunds. These claims can potentially result in significant tax liabilities.

The warning comes in response to a recent surge in unsuccessful Stamp Duty refund claims submitted to HM Revenue and Customs (HMRC) that failed to meet stringent criteria.

These agents typically contact new property owners after locating their information through Land Registry records and property search websites. They entice individuals with promises of refunds for SDLT payments that were supposedly “unknowingly overpaid.”

According to recent analysis conducted by HMRC, approximately one-third of refund claims made for “multiple dwelling relief” were found to be incorrect.

While HMRC does scrutinize these claims and raise inquiries, it often occurs after the agent has already collected their fee, leaving homeowners responsible for the outstanding amount. Incorrect refund claims must be repaid with interest, and individuals may also face potential penalties.

Nicole Newbury, HMRC Director for Wealthy and Mid-sized Business, issued a statement urging caution:

“We have observed numerous spurious refund claims that are highly unlikely to succeed but will result in unnecessary bills for the taxpayers. We advise new homeowners to be wary of tax repayment agents making enticing promises on a ‘no win, no fee’ basis. If an offer appears too good to be true, it probably is. We aim to assist individuals in getting it right and avoiding unnecessary tax bills, so it’s crucial to approach promises of easy money with extreme caution.”

Anyone contacted regarding a Stamp Duty refund claim is advised to consult their original conveyancer, seek independent professional advice, and refer to HMRC’s guidance by searching for “Stamp Duty Land Tax” on the official government website, GOV.UK. The HMRC helpline can also be reached at 0300 2003 510.

In a recent case, a homeowner received a letter from a fraudulent agent suggesting they had overpaid £60,000 in Stamp Duty. The agent argued that the property could be classified as two separate dwellings, despite it being unmistakably a single unit. This example is not an isolated incident, as similar cases include:

  • A claim asserting that a bedroom could be treated as a distinct dwelling eligible for “multiple dwellings relief” due to the presence of an en-suite and a built-in wardrobe, which the agent suggested could function as a kitchen with the addition of a microwave and kettle.
  • An individual contending that their house was not exclusively residential since a neighbouring paddock occasionally housed a horse. The agent advised that the presence of the paddock transformed the transaction into a mixture of residential and non-residential property, thus warranting a lower Stamp Duty payment.
  • A new owner of a six-bedroom house asserting that it should not be categorized as entirely residential because a room above a detached garage served as an office.

Homeowners are urged to exercise caution and carefully evaluate such claims before engaging with dubious tax repayment agents to avoid potential financial repercussions.

Original Source:

This serves as a crucial reminder of the importance of choosing a trusted partner when it comes to claiming SDLT refunds. At CSD, we understand the complexities and potential pitfalls associated with SDLT refund claims. With our expertise and dedication, we strive to provide our clients with efficient and effective solutions, ensuring compliance with SDLT regulations while maximising their chances of a successful refund.

By choosing CSD as your partner, you can have peace of mind knowing that you are working with a reputable company that prioritises your best interests. Our experienced team will guide you through the process, offering personalised assistance and leveraging our in-depth knowledge of SDLT regulations to navigate any challenges that may arise. We aim to minimise the risk of incorrect claims, protecting you from unnecessary tax liabilities and penalties.

When it comes to SDLT refund claims, trust CSD to be your reliable ally. Contact us today to benefit from our professional services and secure the refunds you are rightfully entitled to.

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