Beware Rogue Tax Agents Peddling Dodgy Stamp Duty Refunds
New homeowners are being targeted by sneaky cold-calling tax agents pushing speculative Stamp Duty Land Tax (SDLT) refund claims. These promises of easy cash could leave buyers with hefty tax bills instead.
False Stamp Duty Claims on the Rise
A surge in refund claims to HM Revenue and Customs (HMRC) has sparked alarms. Many don’t meet HMRC’s strict rules. These rogue agents track down property buyers through Land Registry records and property sites, then ring up claiming owners overpaid SDLT.
HMRC’s recent analysis found up to a third of ‘multiple dwelling relief’ refund claims are incorrect. While HMRC investigates, agents often take fees upfront, leaving homeowners on the hook for any shortfalls plus interest and penalties.
Nicole Newbury, HMRC Director of Wealthy and Mid-sized Business, warns: “We are seeing clearly bogus refund claims that will never be successful but will result in an unnecessary bill for the customer.”
Dodgy Claims Examples: Bedroom = Separate Property?
- An agent claimed a bedroom with an en-suite and built-in wardrobe counted as a separate dwelling if a kettle and microwave were added.
- A paddock occasionally housing a horse was used to argue the property was mixed residential and non-residential, qualifying for lower SDLT.
- A room above a garage used as an office was claimed to exclude the entire house from being ‘entirely residential’.
One recent shocker saw a homeowner told they’d overpaid £60,000, despite owning a straightforward single property.
Top Tips: Don’t Get Stung
If you get a refund call:
- Check with your conveyancer first.
- Get independent professional advice.
- Read HMRC guidance by searching ‘Stamp Duty Land Tax’ on GOV.UK.
- Call HMRC directly on 0300 2003 510 for help.
Remember: If it sounds too good to be true, it probably is. Stay alert and avoid unnecessary tax bills by steering clear of dodgy tax refund schemes.
