If you've recently received an unsolicited letter from a company you've never heard of, claiming you may be owed thousands of pounds in overpaid stamp duty, you're probably wondering whether it's a scam. Google searches for "stamp duty refund letter scam" and "stamp duty advisory services reviews" spike every time a new wave of direct mail goes out.
The short answer
The underlying opportunity is real, but the way some firms market it can be misleading.
How do they know I bought a house?
Property purchases in England and Wales are a matter of public record. The Land Registry publishes sale data including the property address, sale price, and date of transaction. This data is freely available and is used by property portals, estate agents, and — increasingly — stamp duty claims firms.
Companies purchase Land Registry data, identify properties sold above the SDLT threshold within the last four years, and send letters to the registered owners. There's nothing illegal about this, but it can feel intrusive — particularly when the letter implies you're "definitely owed" money.
Is the refund opportunity real?
Yes. The underlying tax relief is completely legitimate. SDLT is charged on land and buildings, but not on moveable items (chattels) like carpets, curtains, and white goods. If your purchase price included these items and you paid stamp duty on the full amount, you may have overpaid. HMRC's own guidance at SDLTM04010 confirms this.
The Finance Act 2003, Schedule 4, Paragraph 4 requires the purchase price to be apportioned on a "just and reasonable" basis between land and any other property included in the transaction. This isn't a loophole — it's how the law was designed to work.
For a detailed explanation of which items qualify, see our guide on what counts as a chattel for SDLT purposes.
So what's the problem with the letter?
The issue isn't the opportunity — it's how some firms present it. Here are the common concerns:
Some letters quote refund amounts that are unrealistically high. A letter claiming you could get "up to £10,000 back" on a £400,000 property is almost certainly overstating the case. A realistic chattels deduction on a £400,000 property might be £5,000-£10,000, saving £250-£500 in SDLT. Still worth claiming, but a far cry from the headline figure.
Be wary of any firm that quotes a specific refund amount before seeing your property details, understanding what chattels were included, and reviewing the TA10 form.
Most claims firms charge a percentage of the refund — typically 30-50%. On a £500 refund, that means you'd pay £150-£250 in fees and keep £250-£350. Some firms also charge VAT on top of their percentage, or have minimum fee amounts buried in the small print.
Always ask for the full fee structure in writing before signing anything, and check whether fees are charged on the gross refund (before tax) or net.
Some firms don't just claim for chattels — they push uninhabitability claims or mixed-use reclassifications, which carry significantly higher risk. HMRC has publicly stated that it believes 95% of uninhabitability claims are incorrect, and is actively challenging them.
If a firm suggests your property might qualify as "uninhabitable" or "mixed-use" without conducting a thorough assessment, that's a red flag. These claims can trigger HMRC compliance checks and potential penalties.
Some letters create artificial urgency — "You must act within 30 days" or "This offer expires soon." The actual deadline for claiming is 4 years from your purchase date, not 30 days from receiving a letter. Don't be pressured into signing up quickly.
What to do when you get the letter
Here's a sensible approach:
What the industry bodies say
The Chartered Institute of Taxation (CIOT) published an article titled "Stamp duty refunds: too good to be true?" (updated August 2025), warning homeowners to exercise caution with claims firms. The CIOT advises:
- Be sceptical of unsolicited approaches promising specific refund amounts
- Understand that you are personally liable for the accuracy of your SDLT return, even if a firm prepared it
- Consider using a CIOT-regulated tax adviser rather than an unregulated claims firm
The Law Society has also issued guidance reminding solicitors that clients should be informed about the risks of retrospective SDLT claims, particularly uninhabitability and mixed-use reclassifications.
The bottom line
The letter isn't a scam in the traditional sense — there's a genuine tax relief you may not have claimed. But some firms overstate the refund, charge high fees, and push aggressive claim types that carry real risk.
The smartest approach: check your eligibility yourself first, get a realistic estimate of the refund, and then decide whether the economics justify using a firm or doing it yourself.
Check your refund — free, no sign-up
Get a realistic estimate before responding to any claims firm.