HMRC is warning anyone that has recently purchased a property to be wary of cold callers claiming they are owed a refund of stamp duty land tax. What do homeowners need to watch out for?
HMRC has long warned taxpayers about so-called “high volume” tax repayment companies. These are companies that have a very limited purpose – usually drawing people in with the promise of refunds of unclaimed allowances, e.g. for uniforms or the marriage allowance. While such firms may be legitimate, they tend to retain a sizeable portion of any refund as a fee. This is disproportionate to the work undertaken as such claims can be made directly by completing a simple form. However, some supposed refund firms are actually fraudsters with darker motives. HMRC is now warning about a recent spate of stamp duty land tax refund claims that have not met the criteria for a refund. The most recent approach appears to be where the scammer approaches a homeowner claiming that they could be eligible for multiple dwellings relief for extremely spurious reasons, e.g. because a bedroom has an en-suite bathroom or a built-in wardrobe which “could be used as a kitchen”. While these claims may simply be rejected outright, the worry is that in some cases the refund is initially processed, the scammer takes their “fee”, and the homeowner then receives a demand for repayment of the refund, with interest and possibly even penalties. Naturally, the scammer has then disappeared.
Anyone receiving such a letter should refer it to the professional that handled their conveyance to ensure nothing as been missed. They are also advised to contact HMRC on 0300 2003 510.
This article has been reproduced by kind permission of Indicator – FL Memo Ltd. For details of their tax-saving products please visit www.indicator-flm.co.uk or call 01233 653500.