Please Note: We announced on 5th September 2005 that, from 1 December 2003 up to and including 25 September 2005, we had no legal power to charge our customers interest and any amounts paid in that period, would be repaid. These repayments are now being issued to purchasers and we intend to complete this process by 31 Jan 2006.
In cases where an agent has been authorised to handle correspondence, a letter will be sent to that agent highlighting that a repayment of interest has been made to the purchaser. The letter to the agent may be received after the repayment has been received. We would again ask you not to contact us about these repayments until after 31 Jan 2006.
As from 26 September 2005 we have the legal power to charge interest.
During a review of our legislation concerning the charging and collection of interest we became aware that the statutory provisions for charging interest on stamp duty land tax (SDLT) were incomplete and in consequence we have been collecting and paying interest in error for a period since 1 December 2003.
As soon as we became aware of the issue we stopped charging interest and are taking no further steps to collect interest charged but not paid. In addition two pieces of work were put in place.
We have now identified all those cases involved. All affected purchasers/lessees should receive their repayment (on which we will pay interest) by 31st January 2006 at the latest. Depending on the amounts of the interest to be repaid we will be issuing a cheque directly to the purchaser or for larger amounts inviting them to apply for a refund. We will take no steps to recover interest already paid to purchasers where the error favours the taxpayer.
As of 26th September 2005 HMRC has had the power to charge and pay interest on SDLT. The relevant legislation is now available.
We will update this site on a regular basis to keep you informed of progress.
