Does HMRC Reject Stamp Duty Claims?
Yes, but outright rejections are less common than many people fear. What happens more frequently is that HMRC opens a compliance check — also known as an enquiry — rather than rejecting the claim immediately.
HMRC has 9 months from the date of the amendment to open an enquiry. During that window, they may request evidence, ask clarifying questions, or challenge the basis of the claim. If the 9-month window passes without an enquiry being opened, the amendment stands.
Common Reasons for Rejection or Query
When HMRC does reject or query a stamp duty refund claim, it is usually for one of the following reasons:
- Chattel valuations that appear inflated or undocumented — if the chattel values on the amended return seem disproportionate to the property price, or there is no supporting evidence for the figures, HMRC is likely to query it.
- Uninhabitable property claims without sufficient evidence — claims based on the property being uninhabitable at completion need strong supporting evidence, typically including photographs, surveyor reports, or local authority correspondence. See our uninhabitable property guide for more detail.
- Second home surcharge claims with unclear timelines — if the timeline of the previous home sale is not clearly documented, HMRC may query whether the conditions for the surcharge refund have been met.
- Missing or inconsistent documentation — any discrepancy between the sale contract, SDLT return, and amendment will raise questions.
- Claims submitted outside the 4-year window — these are automatically rejected by HMRC with no discretion.
What Happens During an Enquiry
If HMRC opens an enquiry into your amended return, the process typically works as follows:
- HMRC writes to you (or your specialist) requesting specific information or documentation.
- You must respond within the timeframe given — usually 30 days, though extensions can sometimes be agreed.
- HMRC reviews the response and may ask further questions or request additional evidence.
- The enquiry concludes with one of three outcomes: HMRC accepts the claim in full, HMRC accepts the claim partially (reducing the refund amount), or HMRC rejects the claim entirely.
Most well-evidenced claims survive an enquiry. The key is having clear, contemporaneous documentation that supports the basis of the claim.
Your Options If HMRC Rejects the Claim
If HMRC rejects your stamp duty refund claim after an enquiry, you have several options:
- Provide additional evidence and request reconsideration — if you have further documentation that supports your claim, you can submit it to HMRC and ask them to reconsider their decision.
- Appeal to the First-tier Tax Tribunal — this is a free-to-submit formal appeal process, but it is complex and can be time-consuming. The Tribunal will hear both sides and make an independent decision.
- Seek a specialist tax adviser to manage the dispute — if the amount at stake is significant, engaging a specialist to negotiate with HMRC or represent you at Tribunal may be worthwhile. You can connect with a specialist through our platform.
- Accept the decision — if the cost of appeal outweighs the potential refund, it may be more pragmatic to accept HMRC's decision and move on.
How to Protect Your Claim from the Start
The best way to avoid a rejection is to build a strong claim from the outset. Here are practical steps you can take:
- Document everything at completion — keep copies of the sale contract, completion statement, TA10 form, and any correspondence about the purchase.
- Photograph the property at completion — for uninhabitable property claims, photographic evidence of the condition at the point of completion is critical.
- Ensure chattel values are supported — if claiming a chattel apportionment, make sure the values are reasonable and supported by comparable retail prices. Use our Chattel Checker to assess individual items.
- Keep all correspondence — any emails, letters, or messages between you, your solicitor, and the seller that relate to the purchase terms may be relevant.
For a full walkthrough of the claims process, see our guide on what a successful stamp duty refund looks like.
If you're unsure whether to proceed with a claim or want help preparing the amendment, our DIY Claim Pack provides everything you need — or you can get matched with a specialist for free.
Frequently Asked Questions
Can I appeal if HMRC rejects my stamp duty claim?
Yes — you can appeal to the First-tier Tax Tribunal. However, this is a formal legal process and specialist advice is strongly recommended before proceeding.
How long does HMRC have to challenge my claim?
HMRC has 9 months from the date of the amendment to open a formal enquiry. If no enquiry is opened within that window, the amended return stands.
Does HMRC reject most stamp duty refund claims?
No — the majority of well-evidenced claims are accepted without issue. Rejections and enquiries are more common on high-value claims or where documentation is sparse or inconsistent.