HMRC SDLT Check Defended - £93,480 Saved by dns

Our client received a formal letter from HMRC notifying them of a full Stamp Duty Land Tax (SDLT) compliance check on a recent property purchase.

What began as a routine acquisition quickly became a detailed investigation. HMRC raised twelve questions covering vendor relationships, company ownership structures, property usage and the calculation of SDLT rates.

HMRC’s proposed assessments were serious and included:

• Additional SDLT: £68,500
• Interest charges: £4,430
• Careless error penalty: £20,550

The total potential liability was £93,480. This unexpected financial exposure posed a major risk to the client’s business operations.

Our team immediately took control of the situation by:

• Conducting a full case review and analysing every element of the transaction
• Gathering detailed evidence to support the client’s original SDLT position
• Preparing a strong technical defence to demonstrate compliance with SDLT legislation
• Representing the client in all communications with HMRC
• Well presented, clear and convincing arguments to the HMRC inspector

Following several months of detailed work, HMRC confirmed that:

• The case was officially closed
• No amendments were required to the SDLT return
• All penalties were cancelled
• No additional tax was due

The result was a full defence success and a total saving of £93,480 for the client.

HMRC compliance checks on property transactions are becoming more frequent. This case demonstrates the importance of having experienced SDLT specialists who can respond effectively, manage technical legislation, negotiate with inspectors and protect businesses from significant financial loss.

Key takeaways for property buyers and advisers

• Act quickly: early specialist involvement improves the chance of a favourable outcome.
• Evidence matters: a well-documented position and clear technical submissions are persuasive.
• Specialist representation reduces commercial disruption and financial risk.

If HMRC has opened a compliance check, or you would like an SDLT health-check before completing a transaction, we offer an initial review to assess risk and outline options. Contact us to arrange a confidential discussion.