HMRC Rejected Your Stamp Duty Refund — Here's What to Do
A rejection or compliance check is not the end of the road. You have rights.
First — don't panic
A rejection or compliance check is not a final decision. HMRC operates an administrative process, and you have statutory rights to request a review and to appeal to the First-tier Tax Tribunal. What matters now is responding correctly and on time. The first step is identifying which of the three scenarios below you are in.
Three scenarios — and what to do in each
Scenario 1 — HMRC rejected your claim before paying
HMRC will have sent a decision letter. You have 30 days from the date of the decision to request a statutory review. Write to the address on the letter stating you are requesting a statutory review under s.49C TMA 1970. You do not need a solicitor for this step. Include any additional evidence you have.
Scenario 2 — HMRC paid the refund and is now asking for it back
Do not ignore this letter. HMRC's compliance check must be responded to within the timeframe stated (usually 30 days). Gather your evidence: chattel schedule, photographs, valuation evidence, any contract references to contents. Respond in writing with organised evidence. If the amount is above £5,000, seek specialist advice before responding.
Scenario 3 — HMRC paid the refund and is now issuing a formal assessment
This is more serious. You have 30 days to appeal a formal assessment. At this point specialist advice is strongly recommended — the tribunal route is free but the stakes are higher. Do not simply pay the assessment without first checking whether the basis for it is correct.
Your appeal rights
Statutory review
A free, internal HMRC review. You must request it within 30 days of the decision.
First-tier Tax Tribunal (Tax Chamber)
Free to apply to. No solicitor required for smaller claims. An independent judge reviews the decision.
Upper Tribunal
Available only if a point of law is in dispute arising from the First-tier decision.
Common reasons HMRC rejects or challenges claims
- ✕Insufficient evidence that chattels were included in the sale
- ✕Valuations HMRC considers too high
- ✕Items classified as chattels that HMRC treats as fixtures
- ✕UTRN or transaction reference issues
- ✕All purchasers not included on the claim
Understanding why a claim was challenged is the key to responding well. If your rejection cites one of these, our documents checklist shows what evidence strengthens the response.
Frequently asked questions
Can I appeal an HMRC SDLT refund rejection?
Yes. A rejection is not a final decision. You can request a statutory review by HMRC within 30 days of the decision, and if the review upholds it, you can appeal to the First-tier Tax Tribunal. The tribunal is free to apply to and you do not need a solicitor for smaller claims.
HMRC paid my refund and now wants it back — what do I do?
Do not ignore the letter. HMRC has opened a compliance check and you must respond within the timeframe stated, usually 30 days. Gather your evidence — chattel schedule, photographs, valuation evidence, any contract reference to contents — and respond in writing with it clearly organised. If the amount is above £5,000, seek specialist advice before responding.
How long do I have to respond to HMRC?
You generally have 30 days. Thirty days to request a statutory review of a rejection, 30 days (or the period stated) to respond to a compliance check, and 30 days to appeal a formal assessment. Diary the deadline as soon as the letter arrives.
Do I need a solicitor to appeal to the tax tribunal?
No. The First-tier Tax Tribunal (Tax Chamber) is designed to be accessible — it is free to apply to and you can represent yourself, particularly for smaller claims. That said, if HMRC alleges deliberate inaccuracy or the amount in dispute is large, specialist representation is strongly advisable.
Facing an HMRC Challenge?
Don't respond alone if the stakes are high. A specialist can frame your review or appeal correctly.