Can you make a late claim for Stamp Duty Land Tax (SDLT) relief? Ten appellants joined forces to test the tax rules on making a late claim for Multiple Dwelling Relief (MDR). The FTT found that their late claims were a result of 'making a mistake' with a tax claim and thus they were defeated by the basic rules for Overpayment Relief.

  • In L-L-O Contracting Limited and ten others v HMRC [2023] TC8960, the taxpayers made their land transaction returns and paid SDLT. They subsequently found that they should have claimed Multiple Dwellings Relief (MDR)
  • They made late claims for MDR using Overpayment Relief. These were not made in the returns or by way of amendment to the returns.
  • Overpayment relief has a four-year time limit, while the normal time limit for Amending an SDLT return is 12 months.
  • HMRC refused the claims on the basis that they were not required to give effect to the claims made as a result of a mistake in making a claim.
  • HMRC applied to the FTT to strike out the appeals.

The FTT looked at three issues:

  • Issue 1(a): Whether Overpayment relief can be made as a claim in respect of MDR.
  • Issue 1(b): Whether the person who failed to amend his return for MDR has 'overpaid' any SDLT. 
  • Issue 2: Whether HMRC were not liable to give effect to a repayment of SDLT because a failure to make a claim by the statutory Time limit in the form required by the legislation was a 'mistake' in terms of Overpayment relief.

The FTT found that the answer was 'Yes' to Issue 1(a) and Issue 1(b)

In respect of Issue 2, they agreed with HMRC. A failure to claim by the statutory time limit in the form required by the legislation was indeed a 'mistake'.

Useful guides on this topic

Overpayment Relief
What is Overpayment Relief? When can you claim Overpayment Relief? What are the conditions for a claim for Overpayment Relief? What are the time limits for a claim for Overpayment Relief?

Time limits for tax assessments, claims and refunds
What are the time limits for claiming a tax refund? How far can HMRC go back and raise an assessment? How many years back can a taxpayer appeal? What are the time limits for correcting a tax return?

SDLT: Amending returns & refunds
How do I amend an SDLT return? When can I amend an SDLT return? How do I claim an SDLT refund? How do I deal with contingent consideration?

SDLT: Stamp Duty Land Tax, start here
What is SDLT? What are the SDLT rates? What is exempt from SDLT? What reliefs are available? When are returns due? When can you amend a return?

SDLT: Multiple Dwellings Relief (MDR)
What is Multiple Dwellings Relief (MDR) for Stamp Duty Land Tax purposes? When does it apply and how is it claimed?

External links

L-L-O Contracting Limited and ten others v HMRC [2023] TC8960