HMRC has changed its policy with the intention of speeding up refunds of stamp duty land tax. This sounds like good news but there’s a sting in the tail. What’s the full story?
Following criticism about delays, HMRC has updated its policy for processing stamp duty land tax (SDLT) refund claims. Since 18 June it has adopted a refund now, check later policy.
After a repayment has been made HMRC has up to nine months to carry out a compliance check if it feels one is needed. You should therefore not assume that receipt of a refund means that HMRC has accepted your claim. In its latest guidance it says that if you receive a repayment where the amount you claimed was not due, you must pay it back along with interest. Penalties can also apply if you made an error in your claim. This makes it all the more important to keep records to support your claim.
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.