⚠️ Important SDLT Update ⚠️ A quick reminder to firms and property professionals — please do not submit SDLT returns claiming “uninhabitable relief” simply because a property requires renovation or modernisation. HMRC has significantly tightened its position on claims relating to uninhabitable properties, and this is no longer considered a reliable or viable relief route in most transactions. The legislative changes and updated HMRC guidance following the Finance (No. 2) Act 2024 have made it clear that properties must genuinely be unsuitable for use as a dwelling at the effective date of the transaction, with HMRC increasing scrutiny on these claims. Many historic refund and reclaim companies are now facing challenges and enquiries as a result. Relevant legislation changes include amendments introduced under the Finance (No. 2) Act 2024 concerning SDLT treatment and HMRC’s continued application of Schedule 4ZA FA 2003 alongside updated tribunal interpretations around “suitability for use as a dwelling.” In short: ❌ Needing a new kitchen does not qualify ❌ Damp or cosmetic issues do not qualify ❌ A property needing refurbishment does not automatically make it non-residential HMRC are actively reviewing these submissions, so firms should proceed with caution and ensure robust advice is obtained before making any claim. As always, if in doubt, seek specialist SDLT advice before submission. I can recommend you one!📩

Posted by Cristian Bunescu at 2026-05-07 11:00:08 UTC