Stamp duty errors harming the property market

Errors made in assessing Stamp Duty Land Tax (SDLT) on property purchases are actively harming the market and may be hampering investment in the industry, according to Cornerstone Tax.

The tax adviser suggested that if anyone had recently bought a property, unless they took the advice of a specialist adviser on their SDLT liability, they may have overpaid on Stamp Duty by thousands of pounds.

Cornerstone highlighted an example of one of its property development firm clients o based in Birmingham that had purchased a large property for £1,415,000. At the time of completion, the land had benefitted from planning permission to make structural alterations, and the tax adviser suggested the aim of these was to construct nine residential dwellings, with office space on the lower floors.

When instructed to evaluate the client’s portfolio, Cornerstone identified that the site had been misclassified at the time of purchase, and that Multiple Dwellings Relief was available at the time of completion. As a result, they submitted a claim to amend the SDLT return to HMRC on 24 February 2020 and within a month, HMRC had agreed with the assessment and issued a refund for £34,590.93.

Founder and principal consultant of Cornerstone, David Hannah, handled the case and said: “Simple mistakes like these have a huge impact on the industry and the wider economy. We have seen countless such examples over the last few years and yet the problem stills persists.

“At a time when we need to be looking at the rebuilding of industries currently crippled by the worldwide health crisis, it’s more vital than ever that matters like these are handled right first time, every time.

“Confidence in the market is hugely important at a time when the numbers of transactions are taking such a hit due to the lockdown. Knowing that the SDLT you are going to pay on your property is accurate could be the difference between buying a house or not and we should be doing all we can to encourage the market back onto its feet.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.