Guide on Appealing HMRC’s Refusal of Deferred Payment Application

Appealing HMRC Refusal of SDLT Deferral for Contingent or Uncertain Consideration

If HMRC refuses an application to defer Stamp Duty Land Tax on contingent or uncertain consideration, it must issue a written notice explaining why and stating the tax due. The buyer then has 30 days from the notice to pay, but interest runs from 14 days after the transaction’s effective date, not from the refusal date. A written appeal can also be made within 30 days, setting out the grounds of appeal.

• HMRC must refuse the deferral application in writing and give both its reasons and the amount of SDLT due.
• If the application is refused, the tax becomes payable within 30 days of HMRC’s refusal notice.
• Interest is backdated to 14 days after the effective date of the land transaction, which can create an unexpected extra cost.
• The buyer can appeal, but the appeal must be in writing, made within 30 days of the refusal notice, and explain why HMRC is wrong.
• It is important to check whether HMRC’s notice is valid, clear, and correctly states the tax due and the timing for payment and appeal.

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Appealing HMRC’s refusal to defer SDLT on contingent or uncertain consideration

This page explains what happens if HMRC refuses an application to defer payment of Stamp Duty Land Tax because some of the consideration is contingent or uncertain. The point matters because a refusal can trigger a short payment deadline, and interest runs from an earlier date than many buyers expect.

What this rule is about

In some land transactions, part of the price is not fixed at completion. It may depend on a future event, or the amount may not yet be known. The Finance Act 2003 allows a buyer to apply to defer SDLT that relates to that contingent or uncertain consideration.

This source deals with a narrow but important procedural question: what happens if HMRC says no. It covers HMRC’s duty to give reasons, when the tax must then be paid, how interest is calculated, and the buyer’s right to appeal.

What the official source says

HMRC must give its decision on the deferral application in writing to the person who made the application.

If HMRC refuses the application, its notice must state:

• the grounds for refusal, and
• the amount of tax due.

Once HMRC refuses the application, the tax becomes due and payable within 30 days of the notice of refusal.

The source also states that interest on that payment runs from the end of the period of 14 days after the effective date of the transaction. In other words, the later refusal does not move the interest start date forward to the refusal notice. Interest is backdated to the normal SDLT timetable.

The purchaser may appeal against HMRC’s refusal. The appeal must:

• be in writing,
• be given within 30 days after the date on which HMRC issued the refusal notice, and
• specify the grounds of appeal.

What this means in practice

A refusal does not simply mean that HMRC disagrees with the application. It also has immediate payment consequences.

The practical sequence is:

• the buyer applies to defer SDLT on contingent or uncertain consideration;
• HMRC refuses the application and issues a written notice;
• the notice must explain why HMRC refused and how much tax is due;
• the buyer then has 30 days from that notice to pay the tax;
• but interest is not calculated only from the refusal date. It runs from 14 days after the effective date of the transaction.

This means a buyer can face both a tax payment and accrued interest at the point of refusal. The fact that HMRC took time to decide the application does not, on the wording quoted here, prevent interest from running from the earlier statutory date.

The right of appeal is therefore important, but it does not remove the need to understand the payment position quickly. The source does not itself explain whether payment must be made pending appeal, so this page should not assume more than the source says.

How to analyse it

If HMRC refuses a deferral application, the main questions are:

• Was there a valid written refusal notice?
• Does the notice clearly state the grounds for refusal?
• Does it identify the amount of tax HMRC says is due?
• What is the date of the notice, and when does the 30-day payment period end?
• What was the effective date of the transaction, and therefore from when does interest run?
• If appealing, can the grounds of appeal be stated clearly and in writing within 30 days of the refusal notice?

From a practical SDLT perspective, it is sensible to separate two issues:

• the substantive issue, being whether the transaction really qualified for deferral because the consideration was contingent or uncertain; and
• the procedural issue, being whether HMRC has correctly refused the application and properly stated the tax due.

The source here is about procedure after refusal, not the underlying test for whether deferral should have been granted in the first place.

Example

Illustration: a buyer completes a land transaction, but part of the price depends on future performance and the buyer applies to defer the SDLT attributable to that amount. HMRC later refuses the application and sends a written notice explaining its reasons and stating the tax due.

From the date of that refusal notice, the buyer has 30 days to pay the tax. If the buyer wants to challenge the refusal, the appeal must also be made in writing within 30 days of the date HMRC issued the notice, and it must explain why the refusal is said to be wrong.

However, the interest position is harsher than some buyers may expect. Interest runs from 14 days after the effective date of the transaction, not from the refusal notice.

Why this can be difficult in practice

The main difficulty is timing. A buyer may think that, because HMRC was considering a deferral application, no interest risk arises until HMRC decides it. This source indicates otherwise. If HMRC refuses, interest runs from the normal post-transaction period.

Another difficulty is that the appeal deadline and the payment deadline are both short. A buyer may need to assess quickly whether the refusal is based on a genuine disagreement about the nature of the consideration, a technical defect in the application, or some other reason.

There can also be confusion between HMRC manual guidance and the legislation itself. The manual explains HMRC’s view of the procedure, but the legal effect ultimately depends on the statutory provisions in Finance Act 2003, section 90 and the wider SDLT framework.

Finally, the source does not fully address all consequences of an appeal, including how payment and collection interact with the appeal process. That means some practical questions may need to be checked against the legislation and HMRC’s wider appeals material.

Key takeaways

• If HMRC refuses a deferral application, it must do so in writing and give reasons as well as the amount of tax due.
• The tax must be paid within 30 days of the refusal notice, but interest runs from 14 days after the effective date of the transaction.
• An appeal against the refusal must be made in writing within 30 days of the date HMRC issued the refusal notice and must state the grounds of appeal.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Guide on Appealing HMRC’s Refusal of Deferred Payment Application

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