Homebuyers warned about Stamp Duty scams
HMRC has warned buyers to be cautious of tax agents making false claims about Stamp Duty Land Tax (SDLT).
Some homeowners have been wrongly advised that properties in need of repair are uninhabitable, so are eligible for non-residential rates of SDLT. Rogue agents are suggesting that, for a fee, they can secure a tax refund on behalf of the buyer. However, a Court of Appeal decision has confirmed that properties needing repair are still residential and repayment claims based solely on a property’s condition are not valid.
Anthony Burke at HMRC has warned, “Homebuyers should be cautious of allowing someone to make a Stamp Duty Land Tax repayment claim on their behalf. If the claim is inaccurate, you could end up paying more than the amount you were trying to recover.”
Sources:
https://www.gov.uk/government/news/homebuyers-warning-as-hmrc-gets-tough-on-bogus-stamp-duty-claims