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Property/DIY

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SDLT / chattels

6 replies

Afbaker · 01/07/2025 14:29

Hi all!

Has anyone come across SDLT.tax before? They are a firm of chartered surveyors who claim partial refunds of stamp duty based on the value of the chattels left behind in the property.

HMRC says on their website that you have to use market value for chattels (generally negligible). SDLT.tax says that’s HMRC’s preference, but it’s not what the law says and they use cost price based on the Valuation Office Agency’s methodology. Generally they say they can reduce the stamp duty by about 10%

Trying to work out if this is legit - does anyone have any experience of them?

OP posts:
StrawberryThief1930 · 01/07/2025 14:42

this sounds completely dodgy. have you actually agreed any chattels to be included with the sale? usually they are separately itemised and so not form part of the sale price in any event (therefore wouldn't attract a reduction in the sdlt).

its only the secondhand price that can be agreed for chattels which is very low.

i just can't see how this would ads up to 10% of sdlt cost, plus their cut presumably?

GiveMeWordGames · 01/07/2025 16:36

This was a thing when I bought my first house over 20 years ago but it was a way of squeaking above a SD threshold without paying the extra. So we paid £250,000 "plus £2,000" because the sellers wanted a bit more but we weren't prepared to pay more stamp duty. The items had to be agreed and itemised and could not be part of the fabric of the house.

It only worked even then if you were offering at a threshold and I think they've tightened up massively since anyway. What you describe sounds both dodgy and unlikely.

MinnieMountain · 01/07/2025 16:45

I don’t have experience of them but I have experience of conveyancing. Sounds dodgy. As PP say, the law has tightened up.

Why are you thinking of using them?

Wot23 · 01/07/2025 23:32

as you appear to understand, SDLTY is based on the consideration paid for the property itself, not including any chattels it may contain.
What you should be VERY wary of is a claims management company whose business model is to allege that the value of the chattels is "high" and therefore the inclusive price paid has over inflated the SDLT due.

When completing the SDLT return the value of chattels has to be declared. HMRC computers are not going to miss high figures and may cause the return to be pulled for review by a human. Will the claims management company be around when occurs, or will they have taken their fee cut and gone away?

HMRC's stance on the valuation chattels is clear cut, and if you were to purchase them separately without being linked to a property, your start point in a price negotiation would reflect HMRC's approach, not the so called claims management company's "cost price".

In real terms: would you really pay original cost price for a 20 year old set of curtains or a 5 year old freestanding fridge?
Of course you would not!
You would pay current second hand value (and most people still over estimate that as few have genuine antiques with a rising second hand value!)

Have you any experience of what a "house clearance" company would offer when clearing the entire contents of a deceased person's house?
I know of occasions where the relatives decision to retain the white goods resulted in them being charged to dispose of the remaining furniture as it was considered "brown furniture" and thus worthless. In the case of my uncle, inclusion of the white goods resulted in receipt of £350 to purchase the entire household contents: clothing, furniture, carpets, white goods, china, cutlery etc etc.

HMRC will apply that logic, assess you have made an "incorrect" SDLT return, and make you pay the extra tax due (+interest). Bet the claims management company will not refund their share of the now due tax!)

SDLTM04010 - Scope: How much is chargeable: fixtures and fittings - HMRC internal manual - GOV.UK

SDLTM04010 - Scope: How much is chargeable: fixtures and fittings - HMRC internal manual - GOV.UK

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm04010

Wot23 · 01/07/2025 23:41

PS and bear in mind HMRC do not move quickly.
Their review could be a few years later by which time the claims management company's contract has reached its liability end date
So they can still walk away without any legal basis for having to refund their share of the tax you now owe.

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