New homeowners across the UK are being targeted by cold calls from rogue tax agents promising easy refunds on Stamp Duty Land Tax (SDLT). However, these so-called refunds could result in hefty tax bills instead.
HM Revenue and Customs (HMRC) has issued a warning after receiving a surge of SDLT refund claims that fail to meet legal requirements. These unscrupulous agents obtain new buyer information from Land Registry records and property search websites, then offer “money back” for alleged overpaid Stamp Duty.
HMRC’s recent analysis shows that up to one in three claims for ‘multiple dwelling relief’ refunds are incorrect. Worse still, agents often charge fees upfront and then leave homeowners responsible for repaying incorrect refunds, including interest and penalties.
Nicole Newbury, Director of Wealthy and Mid-sized Business at HMRC, said: “We are seeing clearly bogus refund claims that will never be successful but will result in an unnecessary bill for the customer.”
She added, “If something sounds too good to be true, it probably is. We urge new homeowners to be cautious and seek proper advice before chasing refunds.”
Examples of these dodgy claims include a rogue agent telling a homeowner they had overpaid £60,000 in Stamp Duty by wrongly classifying their property as two homes instead of one. Other false claims involved a bedroom being counted as a separate property because it had an en-suite and wardrobe, and could supposedly be used as a kitchen with minimal appliances.
Another homeowner was misled into believing their back garden paddock meant their house was partly non-residential, reducing their Stamp Duty liability. Similarly, a six-bedroom house owner was told that a room above a garage used as an office made the property not fully residential, lowering their tax bill.
To avoid falling victim to these scams, HMRC advises anyone contacted about SDLT refunds to first speak with their original conveyancer. Independent expert advice should also be sought, and official HMRC guidance can be found by searching ‘Stamp Duty Land Tax’ on GOV.UK.
For direct assistance, homeowners can call HMRC on 0300 200 3510. HMRC warns against trusting cold callers offering ‘no win, no fee’ deals and stresses the importance of playing safe to avoid unexpected tax bills in the future.
Originally published by UKNIP.
