A tax consultancy has raised the alarm over widespread overpayments of Stamp Duty Land Tax (SDLT), potentially affecting thousands of landlords, investors, and developers.

 Key Findings

After analysing over 7,000 transactions, SCA Tax Consultancy claims:

• 11% of buyers overpaid SDLT

• The average refund due is £12,909

• Some clients reclaimed tens of thousands of pounds

Commonly Overlooked Reliefs

SCA stresses these are not “loopholes”, but legitimate, government-recognised reliefs. Missed reliefs most commonly arise from:

• Multiple Dwellings Relief (MDR): Where a property contains more than one self-contained unit

• Probate sales: Purchases from deceased estates

• Chain rescue: Developers/businesses stepping in to keep chains moving or support new-build sales

• Employer relocation purchases

• Complex arrangements: Including deferred completions or rights to purchase

Systemic Issues

• Most advisers do not specialise in SDLT, leading to basic errors

• 70% of overpayments involve probate sales

• 20% stem from mixed-use property misclassification

• 6% involve incorrect second home surcharges

SCA argues that many non-standard properties are taxed as standard homes, and this is costing small investors and developers thousands.

“This might be understandable from a layperson using HMRC’s online calculator – but professional advisers shouldn’t be making these mistakes,” a spokesperson said.

What Needs Fixing?

• HMRC’s SDLT calculator is too simplistic and fails to handle real-world complexity

• SDLT rules remain too complex, especially for business buyers

• Greater awareness and professional scrutiny are needed at the time of purchase

Practical Advice for Buyers

• Revisit recent property purchases (up to 4 years ago) — a refund may be possible

• Seek an SDLT specialist’s review — especially for:

  • Probate, chain rescue or mixed-use purchases

  • Properties with multiple dwellings

  • Non-standard transaction structures

“It’s not just about buyer circumstances,” says SCA, “many reliefs depend on the seller’s position or transaction design.”