HMRC Rejected My Stamp Duty Refund — What to Do Next

Why HMRC Rejects SDLT Refund Claims

HMRC rejects SDLT surcharge refund claims for a relatively small number of recurring reasons. Understanding why your claim was rejected is the first step in deciding whether and how to challenge it.

**Common rejection reasons include:**

• **The 36-month window has expired:** The disposal of the previous property completed more than 36 months after the new purchase
• **The previous property does not qualify as the main home:** HMRC is not satisfied that the property disposed of was genuinely your main residence
• **The disposed property was not the right property:** HMRC's records do not match the property you are claiming to have disposed of
• **Incomplete or inconsistent information:** The claim information does not reconcile with HMRC's records of the original transaction
• **The buyer was not entitled to the refund in the first place:** HMRC believes the surcharge was correctly charged and no refund was due

Step 1: Read the Rejection Letter Carefully

HMRC will send a decision letter explaining the reason for rejecting the claim. Read this carefully and identify precisely which ground they are relying on. The specific reason determines your response strategy.

If the letter is unclear or uses technical language you do not understand, seek clarification from HMRC's SDLT helpline (0300 322 7835) or take advice from a solicitor.

Step 2: Request a Review Within 30 Days

If you disagree with HMRC's decision, you can request a formal review. The request must be made within **30 days** of the date of the rejection letter. This is a hard deadline — if you miss it, you lose the right to a statutory review (though an appeal to the First-tier Tribunal may still be possible in some circumstances).

A review request is made in writing to HMRC. It should clearly state:

• That you are requesting a statutory review of the decision
• The specific grounds on which you believe the decision is wrong
• Any additional evidence you are submitting in support

A different HMRC officer, not involved in the original decision, will conduct the review.

Step 3: Gathering Evidence That the Previous Property Was Your Main Home

One of the most common reasons for rejection is HMRC questioning whether the previous property was genuinely your main residence. For many people, this seems obvious — it was where they lived — but HMRC may challenge it where:

• You owned more than one property and it is unclear which was the "main home"
• You moved out of the property some time before the sale
• Tenants were in the property at the time of sale

Evidence that a property was your main home includes:

• Electoral register / polling card confirmation
• GP registration records showing that address
• Bank statements showing the address
• Council tax bills in your name at that address
• Utility bills
• Correspondence from HMRC itself to that address
• Children's school records showing that as home address
• Insurance documents

Gather as many of these as possible and submit them with your review request.

Step 4: Appealing to the First-Tier Tribunal

If the HMRC review upholds the rejection, or if the 30-day review window has passed, you can appeal to the First-tier Tribunal (Tax Chamber). This is an independent court, and its decisions are binding on both HMRC and the taxpayer.

A First-tier Tribunal appeal should be considered where:

• The amount at stake is substantial (typically above £5,000–£10,000 to justify the effort)
• You have strong factual evidence that HMRC's decision is wrong
• You are prepared to attend a hearing (or submit written evidence)

Tribunal hearings for SDLT matters are generally conducted in writing for straightforward disputes, with an oral hearing only where factual disputes need to be resolved. You can represent yourself, though for larger amounts, a tax solicitor or barrister's written submissions significantly improve your chances.

Getting Specialist Help

For rejected claims involving amounts above £10,000, engaging a tax solicitor or SDLT specialist to review HMRC's rejection and advise on appeal prospects is almost always worthwhile. The cost of a solicitor's opinion is modest relative to the sum at stake.

Use our Stamp Duty Refund Calculator at Property Passport UK to confirm the exact amount you are claiming — having the precise figure documented is important if your dispute goes to tribunal, where the amount in issue forms part of the formal case.