HMRC Cracks Down on Fraudulent Stamp Duty Claims UK-Wide

HM Revenue and Customs (HMRC) has issued a strong warning to homebuyers in the UK to be cautious of scams involving false claims for stamp duty land tax (SDLT) repayments. Some tax agents have been falsely advertising that they can reclaim SDLT by declaring properties as non-residential due to being uninhabitable, but HMRC emphasizes that properties needing repairs but retaining fundamental dwelling characteristics remain subject to residential SDLT rates. This stance was confirmed by a recent Court of Appeal decision in Mudan & Anor v HMRC, which invalidated repayment claims based solely on a property's condition. HMRC warns that inaccurate claims can result in homeowners being liable for the full SDLT amount plus additional penalties and interest. The authority is actively pursuing offenders using both civil and criminal powers to protect public funds and maintain the integrity of the tax system. Homebuyers unsure of SDLT rules are advised to consult official guidance to avoid financial risk.