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. Before requesting a formal statutory review, you can write back with additional evidence and ask HMRC to reconsider — this is informal and faster, and often resolves cases where the rejection turned on missing documentation. Keep the 30-day statutory review deadline in mind while you do so: it runs from the date of the decision, not from the date HMRC responds to your reconsideration request. If reconsideration is unsuccessful, 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 paragraph 36B of Schedule 10, Finance Act 2003. 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 has up to 9 months from the date your amended return is filed to open a formal enquiry (Schedule 10, Finance Act 2003). Once opened, 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.
What happens during a compliance check
If HMRC opens an enquiry into your amended return, the process typically runs as follows:
- •HMRC writes to you (or your specialist) requesting specific information or documentation.
- •You 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 check concludes with one of three outcomes: HMRC accepts the claim in full, accepts it in part (reducing the refund), or rejects it entirely.
Your appeal rights
Statutory review (gov.uk guide)
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
- ✕Uninhabitable-property claims without sufficient evidence (photographs, surveyor reports, local authority correspondence)
- ✕Second home surcharge claims where the timeline of the previous home sale is not clearly documented
- ✕Claims submitted outside the 4-year overpayment relief window — these are rejected with no discretion
- ✕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.
How long does HMRC have to challenge a refund claim?
HMRC has up to 9 months from the date the amended return is filed to open a formal enquiry (Schedule 10, Finance Act 2003). If no enquiry is opened within that window, the amended return stands. Where HMRC suspects deliberate behaviour, separate discovery powers can extend the period substantially.
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.
Last reviewed: 21 May 2026 by the StampDutyBack team. Statutory review procedure verified against Finance Act 2003, Schedule 10, paragraph 36B.
Facing an HMRC Challenge?
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