Stamp Duty Land Tax claims update

HMRC has issued a fresh warning to property buyers about misleading Stamp Duty Land Tax (SDLT) repayment claims. Some tax agents are suggesting that buyers can reclaim SDLT on residential property purchases if the property was in poor condition or needed repair at the time of purchase. HMRC has made it clear: this is not the case. A recent Court of Appeal case (Mudan v HMRC) confirmed that even if a property is dilapidated, vandalised, or unfit for habitation, it will still be classed as residential property for SDLT purposes. That means higher residential rates apply. Anyone making speculative claims risks being liable for the full SDLT bill again — plus penalties and interest. HMRC is already taking action against agents who promote these schemes. 👉 The key takeaway:If you’ve bought a property in need of repair, you cannot reclaim SDLT simply on the basis that it wasn’t liveable at the time. Genuine SDLT reclaims exist, but this isn’t one of them. At A&C Chartered Accountants, we always ensure our clients receive the right advice and avoid costly mistakes. If you’re unsure about an SDLT issue, speak to us before making a claim. At A&C Chartered Accountants, we're not just accountants; we're your partners in success. Based in Manchester, our experienced team handles everything from managing limited company and sole trader accounts to expertly navigating tax returns. Beyond financials, we play a crucial role in driving your business’s growth, strategically steering it towards success with confidence and clarity.

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