A new report circling the media suggests that homeowners may be entitled to thousands of pounds in refunds after an official Stamp Duty tool miscalculated tax bills.
The HM Revenue & Customs tool, which is reportedly used by some solicitors to work out tax owed, does not account for reliefs on certain properties, such as commercial or farmland outbuildings or a “granny annexe”, according to reports.
Provisional figures suggest that the tool may have been wrong in as many as one in six calculations.
According to the Times, the calculator has the inability to distinguish between homes and mixed-use properties, charged at 12 per cent and five per cent respectively.
An HMRC spokesperson has said the tool was intended to be used as a “guide only”.
Sarah Dwight, a solicitor on the Law Society’s conveyancing and land law committee said: “A lot of the calculators are not up to it.
“We write to the HMRC for guidance but we’re finding a long turnaround time, often 28 days, and that doesn’t help the chain if someone is moving house.”
Do you need property tax advice? The specialist property team at RDP Newmans can help calculate the correct level of tax and apply for a refund on your behalf. Contact us today.