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HMRC responds to stamp duty fears after claim households are owed £27,000

Posted 21st December 2023 by ctatax-admin

Cornerstone Tax is the UK’s leading property tax advisers, specialising in Stamp Duty Land Tax. We’ve reclaimed over £15 million in overpaid SDLT in the last 12 months. Contact us for stamp duty advice, or to see if you are eligible to claim a refund from HMRC on overpaid Stamp Duty.

Read the article on The Express

HMRC has hit back at claims that millions of households across the country are overpaying on stamp duty that featured in new research.

Tax expert group Cornerstone is reporting that taxpayers are overpaying on the levy by a shocking average of £27,000.

According to the tax specialist, HMRC is taking longer than the six-week period to handle refund claims.

The number of cases exceeding this timeframe has risen with just 36 percent being within the target period last year.

According to Cornerstone, the firm has successfully reclaimed more than £30million back in overpaid stamp duty relief over the last three years with the majority being linked to Multiple Dwellings Relief, Uninhabitable Status and Pensions.

One of the 180 clients Cornerstone has successfully represented in getting returns back from stamp duty is Mr Peter Loyal who received £18,500 back.

Read: How an annexe could save you thousands on stamp duty

He held a residence in a property investment partnership and transferred the property into a connected pension trust scheme which was transferred at market value on May 4, 2016 for a consideration of £580,000 and SDLT of £18,500 was paid.

However, it was found that since the translation was a transfer from a partnership to a connected pension trust scheme, a certain provision under schedule 15 had to be applied.

Due to this, no stamp duty was due and no return was required as it was not a notifiable transaction.

 

David Hannah, group chairman of Cornerstone Tax, recommends that those affected by this issue reach out for support to get their hard-earned cash back.

He explained: “By conducting a thorough analysis, seeking professional advice, and understanding the applicable regulations, you can minimize the risk of overpaying SDLT.

“However, if an overpayment does occur, initiating a review promptly allows you to rectify the situation, gather evidence, and pursue appropriate actions to claim a refund or make adjustments as required.”

Read: How long does a stamp duty refund take?

But HMRC has hit back at the claims, warning the public that all may not be as it seems.

An HMRC spokesperson said: “Many of the Stamp Duty Land Tax (SDLT) claims we receive from repayment agents are wrong and some will make incorrect claims just so they can charge a fee.

“If someone promises easy money and it sounds too good to be true, it probably is. Where a claim is wrong, the purchaser is liable to pay back all the tax that was refunded, with interest and could also have to pay a penalty of up to 100 percent of the tax refund.”

Cornerstone Tax is the UK’s leading property tax advisers, specialising in Stamp Duty Land Tax. We’ve reclaimed over £15 million in overpaid SDLT in the last 12 months. Contact us for stamp duty advice, or to see if you are eligible to claim a refund from HMRC on overpaid Stamp Duty.

Contact us today

Here at Cornerstone Tax, we are Stamp Duty Land Tax (SDLT) experts.
You can call us on 01858 894349 or email us at newbusiness@ctatax.uk.com