What if I have paid too much
stamp duty land tax?
This item was published on 8 September 2005
(This note only applies to stamp duty land tax, which affects most land transactions
on or after 1 December 2003)
If you think you have paid too much stamp duty land tax (SDLT) you should
act quickly. There are time limits, which are explained below. Before writing,
however, please read the following.
There are a number of circumstances in which a repayment can potentially
arise.
These include:
- an amendment to an SDLT return within one year of the filing date which
causes a repayment by amending the amount of tax that you think should have
been paid
- a claim that a mistake was made on the return which led to the wrong
amount of tax being paid which can be made in writing up to six years after
the date that the return was made
- an amendment to a return by HMRC when it closes an enquiry into a return
made under self assessment. This event is unlikely to be triggered by any
action of yours
In relation to the first of these types of repayment, which HMRC expect to
be the most likely type of repayment under SDLT, please note the following;
- Where you write to us and explain that you wish to amend an entry on
your return, even if you do not specifically mention your return, this is
regarded as an amendment to a return – see also the paragraph “Information
to provide…”below for details of the information that you will
need to provide
- The system is a process now/check later system. This means that such
a repayment will usually be processed without enquiry at that point. However,
it may be that HMRC later choose to open an enquiry into the amended return.
If, as a result of that enquiry it becomes clear that the repayment, or
a part of it, was not due HMRC will require repayment of that tax. An enquiry
into an amended return can be made up to 9 months after you have made your
amendment
Information to provide when claiming a repayment
When you write to us, you will need to give us the reference number (UTRN)
on the Land Transaction Return (SDLT1) that you or your solicitor/licensed
conveyancer sent us. If at all possible you should send us a photocopy of
the original SDLT1. You will also need to explain clearly why you think you
have paid too much SDLT, what parts of the original SDLT1 you now think are
wrong, and what your revised figures are.
The letter should be sent to:
Birmingham Stamp Office
9th Floor
City Centre House
30 Union Street
Birmingham
B2 4AR
DX: 15001 Birmingham 1
