Table of contents
YouTube explainer for clients
PDF explainer for clients
Pitches
Useful facts and talking points
Guide to Explaining Stamp Duty Reclaims
Compliance with HMRC Guidance
All our reclaim cases are fully compliant with HMRC guidelines. According to HMRC, properties with “hazards present that would cause a local authority to issue a prohibition notice” should not be classified as dwellings for stamp duty purposes, even if no notice was in effect at the time of purchase. Hazards are categorized under Section 20 & 21 of the Housing Act 2004.
Key Points
- 100% Success Rate: legitimate reclaims for properties with HHSRS category one hazards, along with proper documentation are always paid by HMRC.
- Case Law: The PN Bewley vs. HMRC case established that non-habitable properties due to condition issues should not be classified as residential, reinforcing the right to reclaim overpaid stamp duty.
- Viability: Stamp duty reclaims make economic sense because residential rates are higher than non-residential rates, especially for property investors and owner-occupiers with properties valued over £1 million.
Understanding Liveability
A property is considered unliveable if it’s unsafe or neglected to the extent that it deters reasonable occupancy.
Case Condition Issues
- Extensive Renovations: Over £3,000 spent on essential repairs post-purchase.
- Toxic Mould: Any amount due to strict guidelines.
- Damp: Severe cases affecting liveability.
- Property Neglect: Significant wear and tear or outdated features.
HMRC Review Period
- After paying a reclaim, HMRC has nine months to review. Beyond this period, HMRC can’t reclaim the money.
- On average out of 1,000 reclaims, only 7 reclaims are clawed back by HMRC.
Fee Refund Assurance
If HMRC reclaims the money, we refund our fees with interest at 4.25%.
Terminology and Phrases
- HMRC Compliant Reclaims: We only submit cases for properties with genuine health or safety hazards.
- Success Fees: 30%+VAT of the sum reclaimed.
- Procedurally Correct: Properly documented cases are always paid.
- No Win, No Fee: Clients only pay if the reclaim is successful.
- Hazardous Condition Issues: Properties with hazards compliant with HHSRS.
- Right to Reclaim: Mandated by law for correcting errors in stamp duty returns.
- Overpaid Stamp Duty: Suggests reclaiming excess payment.
- HMRC Pay You, You Pay Us: Clients have control and pay us upon satisfaction.
Qualifier Statements
- Purchased in the Last 4 Years: According to the Finance Act 2003, errors must be corrected within four years.
- Paid Higher Rate Stamp Duty: For properties bought through a limited company or over £40,000.
- Hazardous Condition Issues: Issues like damp, mould, and neglect qualify for reclaim.
- Bought in England or Northern Ireland: Only relevant in these jurisdictions
Qualifier Questions
- Did You Pay Higher Rate Stamp Duty?
- Did You Buy Through a Limited Company?
- How Much Was the Property and Stamp Duty Paid?
- Were Any Buyers Non-Resident for Tax Purposes?
Sales ‘Lines’. Phrases
‘HMRC compliant reclaims’
- Reclaims are compliant within HMRC guidance. We only submit cases where the property has hazards to health or safety, such as damp, mould, unsafe electrics, general property neglect, or where kitchen facilities or bathroom facilities are not fit for purpose.
‘Success fees are 30%+VAT of sum reclaimed’
- It’s important to confirm what the fees are a percentage of the total amount reclaimed from HMRC.
- We always add ‘sum reclaimed’ , but it could be ‘money reclaimed’ or ‘amount reclaimed’
- We use the phrase ‘sum reclaimed’ to sound a little more formal.
‘100% success rate on reclaims which are procedurally correct’
- If a reclaim case is correctly put together with the right documentation, HMRC will pay since they operate a ‘pay now, check later’ policy.
‘Procedurally correct’
- We use this phrase to explain if cases are correctly put together and they follow procedure, they get paid.
‘Touch wood, to date we have never had a clawback from HMRC’
- We work within their guidance on submitting reclaims for properties with condition hazards as described in HHSRS legislation (housing health and safety rating system)
‘Reclaims’
We use the term ‘reclaim’, because it’s defined as: reclaim verb [ T ] UK /rɪˈkleɪm/ US /rɪˈkleɪm/
To take back something that was yours:
- You’ll be able to reclaim the tax on all equipment that you buy.
- I reclaimed my suitcase from the lost luggage office.
‘No win, no fee’
- We use this phrase since it’s used by law firms who will take a case and if they win, they are paid fees. Otherwise they are not paid.
‘Case’
- We always describe the file sent to HMRC as a ‘case file’ , because it suggests it’s a legal argument to be won
‘Success fee’
- More recently I’ve begun using the term success fee, because it ties in with the idea of a law firm working on a no win no fee basis. If we ‘win’ the case, we are paid fees. These would be success fees. In reality, we don’t win the case, we get paid because it is procedurally correct
‘Hazardous condition issues’
- ‘Hazards’, because it ties in with HHSRS i.e. if a property has hazards, it could be subject to a prohibition notice, which means our cases are compliant with HMRC guidance.
‘You have a right to reclaim’
- We use the term ‘right’ since its mandated in law that if someone has made a mistake, they have the right to correct an error in their Stamp duty land tax return
‘Overpaid Stamp duty’
- ‘Overpaid’ Stamp Duty suggests you paid too much tax and you should get it back.
‘No win no fee’
- No win, no fee. A phrase used by lawyers. It’s suitable for us, because we work with cases which are to be accepted and paid by HMRC.
‘HMRC pay you, you pay us’
- ‘HMRC pay you, you pay us’. A simple way of explaining the customer has control and it’s up to them to pay us if they’re satisfied with our service. We ask HMRC to pay the client directly so we have less risk of scrutiny from HMRC.
‘HMRC clawback, we pay back fees, with interest’
- People often ask what happens if HMRC reclaims the money. I explain there is no penalty. They may charge some interest, but it’s based on the prorated amount you received and the time you had it, at an interest rate of 1% below the base rate, which is 4.25%.
- We pay our fees back to the client with interest charged at 4.25%.
‘HMRC typically claw back 7 in 1000 reclaims’
- Instead of saying HMRC clawback 0.75% of reclaims, it’s easier to visualise ‘7 out of 1000 reclaims’
Qualifier statements
‘Purchased Property in The Last 4 Years In England or Northern Ireland’
- Finance act 2003 states you must correct an error within four years of purchasing the property in question
‘Paid Higher Rate Stamp Duty of 3%/5%’
- Not everyone knows whether they did pay the higher rate Stamp duty. So I ask qualifier questions. See below
‘Property Suffered From Hazardous Condition Issues’
We always give a pointer and say ‘damp, mould, dangerous electrics, general property neglect’
See below for condition issues
Qualifier questions
Stamp duty
‘Did you pay higher rate Stamp duty?’
- Sometimes people know if they pay the higher rate Stamp duty. If not, we go to the next question.
‘Did you buy through a limited company?’
- People know if they bought through a limited company or not. If so, by that definition they paid higher rate Stamp duty
‘How much was the property? And how much Stamp duty did you pay?’
- By knowing how much the property was and how much Stamp duty they paid, it’s easy to do a calculation here: https://landtaxadvice.co.uk/tools/stamp-duty-calculator and if their number ties in with your calculation, you know they paid higher rates Stamp duty and it is economically viable for them to reclaim
‘Were any of the buyers non-resident for tax purposes?’
- We don’t ask this question very often, but if I am speaking to a foreign national, such as a Hong Kong Chinese investor, or somebody abroad I always ask since they will have been subject to an additional 2% stamp duty surcharge on top of the 3% stamp duty surcharge for buying through a limited company.
Condition issues
‘Did your property have damp, electric issues and general property neglect?’
- The people we talk to are typically property investors who understand property condition. So they can relate to the condition issues.
‘When you bought the property, was it in a rentable condition?’
- Another way of asking about condition issues is to ask if they would have been able to rent their property out after buying it. If they had to renovate, they probably have a case.
‘Did you spend a lot of money on renovations?’
- If they spent more than £3000 on renovating the property, it’s possible they have a reclaim case
‘What condition issues were there?’
- A fairly open leading question…
‘Typical condition issues:’
- Damp
- Mould
- Structural cracks
- Subsidence
- Leaking roofs
- Faulty plumbing
- Electrical issues
- Condensation
- Wood rot
- Pest infestations
- Poor insulation
- Asbestos
- Faulty heating systems
- Window and door defects
- Poor ventilation
- Water damage
- Foundation issues
- Sagging floors
- Peeling paint
- Gutter problems
Phrases and language we use
‘Decision tree’ questions and answers

Introduction
- Question 1: Have you heard about the possibility of reclaiming overpaid stamp duty due to a property’s condition?
- Yes: Confirm if they are interested in reclaiming overpaid stamp duty. If yes, proceed to Question 2.
- No: Explain the concept of stamp duty reclaim based on property habitability at the time of purchase. If they show interest post-explanation, proceed to Question 2.
Initial Qualification
- Question 2: Have you purchased any residential properties with condition issues in the last four years?
- Yes: Proceed to Question 3.
- No: Go to Question 2.1.
- Question 2.1: Do you know any property investors who have bought a residential investment property in the last four years?
- Yes: Explain the referral benefits and inquire if they’d like a link to the stamp duty website and referral scheme. Send information accordingly and schedule follow-up emails. Link to refer a friend here (link opens new tab)
- No: Thank them for their time and conclude the conversation.
Calculating Potential Refund
- Question 3: Could you please share the purchase price of one or more of those properties?
- Action: Calculate the estimated stamp duty refund. Client facing stamp duty calculator | Introducer calculator (Links open new tab)
- Follow-up: Present the estimated refund and inquire if they wish to investigate a potential claim.
- Yes: Proceed to Question 4.
- No: Offer further assistance if needed and conclude the conversation.
Assessing Case Viability
- Question 4: Could you describe the property’s condition at the time of purchase and provide the full property address?
- Action: Verify property condition using Zoopla and Rightmove.
- Poor Condition Found: Inform the client of a viable case and explain the next steps.
- Poor Condition Not Evident: If the prospect insists the property was in poor condition, request photographic evidence.
- Evidence Provided: Proceed with the case.
- No Evidence: Inform them of potential insufficiency in evidence for a viable case.
- Action: Verify property condition using Zoopla and Rightmove.
Explaining Next Steps
- If Viable Case: Outline the High-Level Process:
- Send Us Evidence.
- Build & Send Case to HMRC (upon viability confirmation).
- Receive Payment & Settle Fees.
- Follow-Up: If additional evidence is received, review and decide on case viability.
- Viable Case: Proceed with the high-level process.
- No Viable Case: Thank them for cooperation, offer further assistance, and conclude the conversation.
Useful resources
- Client facing stamp duty reclaim is calculator (Link opens a new tab)
- Commission calculator for stamp duty reclaims
- Condition assessment tool to check viability of cases
- Extensive stamp duty reclaims reference guide (Link opens a new tab)
- Detailed case law explanation why stamp duty reclaims can occur (Link opens a new tab)
- The 2003 Finance act, which governs HMRC reclaims (Link opens a new tab)
Email pitches
Subject: Potential Overpayment of Stamp Duty on Your Property
Hi [Recipient’s Name],
I believe you may have overpaid stamp duty on your property at [address of property]. As you remember, the house had significant condition issues at the time of purchase.
I am currently collaborating with Nick from the Stamp Duty Advice Bureau, who specialises in HMRC-compliant stamp duty reclaims based on property condition.
Nick has explained that if a property was purchased with serious condition hazards such as damp, toxic mould, faulty electrics, or general neglect, and it was not liveable at the time of purchase, it should not have been classified as residential by your conveyancing solicitor.
By reassessing your property as non-residential with HMRC, it would be subject to lower stamp duty rates, potentially entitling you to a stamp duty refund.
According to HMRC guidance, properties with significant hazards that could have warranted a local authority prohibition notice due to excessive damp, toxic mould, dangerous electrics, or other issues should be classified as non-residential for stamp duty purposes. Read more here: https://landtaxadvice.co.uk/hmrc-compliance-hhsrs-hazards
If you’re interested in learning more, I can introduce you to Nick.
Best regards,
[Your Name] [Your Contact Information]
Set up a video meeting with Nick Garner.
Interested in working with us? Set up a meeting with Nick Garner to see how we can help you.
Or contact Nick via:
Prompt response:
WhatsApp: 07814 029751
Email: [email protected]
Office: 0161 554 0123
Personal mobile: 07814 029 751
Or book a video appointment above.
