Stamp Duty Refund ???

Oldpink

Bought our house in April 2015. Just got a letter from 'Rawlinson & Hunter Chartered Accountants' saying that we overpaid the stamp duty on our purchase by about 50% because 'we would not have claimed a new tax rule that applies to a small number of properties.....'
Sounds dodgy but offered on a 'no refund, no fee basis'.
Deadline (surprise, surprise) of 8th May....

Can anyone shed any light or advice ?

All responses appreciated.......,

booksurr

50% is typically the amount offered by "Stamp Duty Mitigation Schemes" particularly with "no win no fee" terms

these are , you will not be surprised to hear, a high risk venture because HMRC have clearly stated they regard all these schemes as unproven and merely waiting their turn to be investigated by HMRC at which point you, the taxpayer, will be presented with a bill for 100% of the unpaid SDLT plus a bill for penalties for late payment. Meanwhile your "contract" with said accountants will state that no refunds of fees paid will be given if (when) HMRC overturn that scheme so at that point it will have cost you 150% + penalties of what it would cost to pay the SDLT in the first place

there are dozens of posts over the last 2 - 3 years re mitigation schemes - use the search function and have a read ...

Oldpink

Thanks very much - suspected there was a catch....

Marvel1

So if you have the overpayment returned, you have to pay a fee.

kinger101

They have paid the correct amount of stamp duty already. Some shady firm of accountants think they're come up with a cunning plan to completely mitigate the liability, and will want half the amount (plus VAT) in payment to operate the scheme.

These schemes typically get challenged by HMRC, and the people end up paying lots more in the end. The whole "no win, no fee" stuff is nonsense. The HMRC never tell you your stamp duty return is correct, and they can come back up to six years later demanding full payment and penalties. And then they'll go though all you other tax affairs as well.

davidperry34

A few weeks ago i received the same letter from Rawlinson & Hunter offering a stamp duty refund. During a quick google search I did see this thread, so was extremely wary from the get go. I figured there was no harm in at least calling them, and I spoke to one of their consultants and now have a meeting booked in for next week at their London office. I have to say that it seems kosher at this stage, they are a very reputable firm and promised to show me all the relevant legislation before proceeding. I wiill provide an update after I have met them personally.

bobbymotors

davidperry34 wrote: »

A few weeks ago i received the same letter from Rawlinson & Hunter offering a stamp duty refund. During a quick google search I did see this thread, so was extremely wary from the get go. I figured there was no harm in at least calling them, and I spoke to one of their consultants and now have a meeting booked in for next week at their London office. I have to say that it seems kosher at this stage, they are a very reputable firm and promised to show me all the relevant legislation before proceeding. I wiill provide an update after I have met them personally.

^^^^^^ A fool and his money ^^^^^

It won't work. Well, it WILL work initially, until HMRC see the nil return for SDLT.

At which point you will get a letter from them demanding the SDLT

And you will ask the company for the return of your fee, and you won't get it.

Don't do it. It won't work.

jimbog

davidperry34 wrote: »

A few weeks ago i received the same letter from Rawlinson & Hunter offering a stamp duty refund. During a quick google search I did see this thread, so was extremely wary from the get go. I figured there was no harm in at least calling them, and I spoke to one of their consultants and now have a meeting booked in for next week at their London office. I have to say that it seems kosher at this stage, they are a very reputable firm and promised to show me all the relevant legislation before proceeding. I wiill provide an update after I have met them personally.

On so many levels just don't.

Go to London, but go to the V&A instead

MobileSaver

davidperry34 wrote: »

they are a very reputable firm

How do you know they are reputable? Some people might think you work for them...

Here's just one example why you should avoid such schemes like the plague, the OP in the following case ended up losing over £4000 !

Stung by stamp duty avoidance scheme

Jothorp69

Hi, did you have your meeting? If so, how did it go? Had the same letter from the same company this week.....had a telephone conversation in which they asked me lots of questions about the part of our house that is essentially a granny annexe.....

Jothorp69

davidperry34 wrote: »

A few weeks ago i received the same letter from Rawlinson & Hunter offering a stamp duty refund. During a quick google search I did see this thread, so was extremely wary from the get go. I figured there was no harm in at least calling them, and I spoke to one of their consultants and now have a meeting booked in for next week at their London office. I have to say that it seems kosher at this stage, they are a very reputable firm and promised to show me all the relevant legislation before proceeding. I wiill provide an update after I have met them personally.

Hi, did you have your meeting? If so, how did it go? Had the same letter from the same company this week.....had a telephone conversation in which they asked me lots of questions about the part of our house that is essentially a granny annexe.....