Appealing HMRC’s refusal to defer stamp duty payment
In brief
HMRC’s manual says that a refusal to defer SDLT must be given in writing, with reasons and the tax due. It also says that a buyer may appeal in writing within 30 days.
- Check the issue date on the refusal notice.
- State the reasons for your appeal.
- Do not assume an appeal stops payment or interest.
Scroll down for the full analysis.
Read the original guidance here:
Appealing HMRC’s refusal to defer stamp duty payment
If your property price may change later, you may have asked HMRC to defer some stamp duty land tax, or SDLT. If HMRC refuses, its manual says you can appeal in writing.
Timing is important: the manual gives a 30-day appeal period.
What this rule is about
The final price may not be known when you buy if planning permission is granted, if business targets are met, or if another specified event triggers a payment. That matters.
The law calls this an uncertain or contingent payment. You normally work out SDLT using an estimate or an assumption. A deferral can deal with qualifying tax on a later payment.
What the official source says
HMRC’s manual promises written deferral decisions. If HMRC refuses a deferral application, its notice must explain why, state the tax HMRC says is due, and give the decision in writing. The deadline matters.
- According to HMRC’s manual, the tax must be paid within 30 days of the refusal notice.
- It says interest runs from the end of 14 days after the transaction’s effective date, which is usually the tax date.
- It says the buyer can appeal the refusal.
- The appeal notice must be in writing.
- It must be given within 30 days after the refusal notice was issued.
- It must say why you think HMRC’s decision is wrong.
What this means in practice
An appeal lets you challenge HMRC’s refusal. It is not simply a request for HMRC to reconsider the same material without identifying an error; it is a formal challenge.
Your written notice must identify the disputed point, set out the facts supporting your view, and explain why those facts show HMRC’s decision is wrong. Keep it focused.
Do not assume that an appeal stops payment while HMRC considers your challenge, even if you consider the future payment qualifying. Payment may remain due.
A refusal makes tax due within 30 days. The manual says interest may already run.
- Keep the refusal notice and record its issue date.
- Check the tax amount against your contract and your SDLT calculation.
- Set out each reason for the appeal clearly and briefly.
- Keep evidence that shows when you sent the appeal.
How to analyse it
Begin with the payment clause rather than the contract label. Ask whether, when you bought, the amount depended on an event that was genuinely uncertain in the future.
- Identify each part of the price that was known at completion.
- Identify each amount that depended on a future event or future valuation.
- Check whether any future payment might become due more than six months after the tax date.
- Compare the deferral application with HMRC’s stated reason for refusal.
- Count 30 days from the date HMRC issued the refusal notice.
Example
Amir completes his purchase on 1 May. Planning permission can trigger an extra sum.
HMRC refused his deferral application in a notice it issued on 1 September. On the manual’s account, the stated tax is due by 1 October. Amir must appeal in writing by then.
He must explain why the future payment meets the deferral conditions. The manual says interest runs from 15 May.
Why this can be difficult in practice
In practice, the outcome often depends on the contract wording and the relevant dates. A payment due later is not automatically uncertain. Uncertainty alone does not defer all SDLT.
- A known instalment may still have to be paid on the normal timetable.
- Rent cannot be covered by this deferral route.
- The date HMRC issued its notice may differ from the date you read it.
- HMRC’s manual is guidance, not the law itself.
Key takeaways
- Read HMRC’s refusal notice closely.
- Appeal in writing within the stated 30-day period.
- Explain your grounds and keep proof of sending.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 section 51 — working out tax where future price is unknown
- FA 2003 section 90 — applying to defer tax on uncertain future payments
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- The regulation that supplies the detailed refusal, interest and appeal process was not included in the supplied legal materials.
- The bundled Finance Act 2003 text is current only to 17 November 2025. The current procedural rules should be checked before relying on a deadline.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- Signed contract and transfer — the property bought, the agreed price and any future payment terms
- Completion statement — the completion date and sums paid at completion
- Earn-out, overage or price-adjustment clause — why a later payment is uncertain or depends on a future event
- Payment timetable and calculations — which payments may fall more than six months after the tax date
- Copy of the deferral application — what was asked of HMRC and the facts supplied
- HMRC’s refusal notice — the date issued, HMRC’s reasons and the tax amount stated
- Original SDLT return and tax calculation — the tax reported and how known and uncertain payments were treated
- Proof of sending the appeal — whether the written appeal was sent within the stated time limit
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION Appealing HMRC’s refusal to defer stamp duty payment [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 section 51 - working out tax where future price is unknown https://www.legislation.gov.uk/ukpga/2003/14/section/51/2025-11-17 - FA 2003 section 90 - applying to defer tax on uncertain future payments https://www.legislation.gov.uk/ukpga/2003/14/section/90/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm50930 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. HMRC guidance is HMRC's view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - The regulation that supplies the detailed refusal, interest and appeal process was not included in the supplied legal materials. - The bundled Finance Act 2003 text is current only to 17 November 2025. The current procedural rules should be checked before relying on a deadline. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 1 September 2026
Useful article? You may find it helpful to read the original guidance here: Appealing HMRC’s refusal to defer stamp duty payment
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