Angela Rayner case has increased scrutiny of the accuracy of Stamp Duty payments, with the taxman recovering £201m in just twelve months.
27th Jan 20260 572 1 minute read Simon Cairnes
The number of homebuyers investigated for underpaying Stamp Duty has doubled in a year, as HMRC cracks down on what is effectively a self-declared, good-faith system where refunds can be paid before checks are carried out.
More than 3,000 taxpayers were investigated for Stamp Duty avoidance in 2024-25, with HMRC recovering an average of £66,000 per case and generating an additional £201m for the Treasury. That compares with 1,617 investigations the year before, when £85.4m was recovered.
Stamp Duty applies to purchases above £125,000, or £300,000 for first-time buyers, with rates between 2% and 12%. Second-home buyers pay an additional 5% surcharge, adding to the complexity of returns and the risk of costly mistakes.
Legitimate errorsThere are legitimate reasons for a refund, such as when an error was made in the original return, or when a buyer pays the second home surcharge but sells their previous main home within three years. Refunds can also apply if a non-UK resident later becomes a UK resident.
However, HMRC often repays the money before fully checking eligibility – and if it later decides no refund was due, buyers can be required to repay the amount, potentially with penalties. HMRC has also warned homebuyers to avoid “rogue repayment agents” offering no-win-no-fee claims online.
People could end up paying more than the amount they were trying to recover.”
“Homebuyers should be on the lookout for rogue repayment agents offering to make Stamp Duty repayment claims for them. If a claim is inaccurate, people could end up paying more than the amount they were trying to recover.”
According to the Telegraph’s tax expert, Mike Warburton, claims are often based on buyers arguing a property was not habitable, but that “some agents have been pushing speculative claims on a no-win-no-fee basis for relatively minor issues such as the need for a new kitchen or rewiring.”
The clampdown comes after Angela Rayner was forced to resign as Deputy Prime Minister last year after it was revealed she had underpaid Stamp Duty by tens of thousands of pounds on a Hove flat. Rayner said she had incorrectly believed she qualified for an exemption from the higher rates owed on second homes.
TagsAngela Rayner stamp duty fraud 27th Jan 20260 572 1 minute read Simon Cairnes Share Facebook X LinkedIn Share via Email
