What can you do if an SDLT refund has been approved but the money has not arrived?

Introduction

Many people search for help when HMRC appears to have accepted a Stamp Duty Land Tax refund claim, but the payment still has not reached their bank account. In practice, the issue is often not the legal basis of the refund, but delay in processing, tracing or releasing payment.

If that happens, the next step is usually to chase HMRC, ask for an update on the payment status, and, if matters continue to stall, raise a formal complaint. This article explains the practical position in plain English.

The Question

A taxpayer had been waiting for an SDLT refund but had still not received the money into their bank account. They wanted to know what steps could be taken to move matters forward, especially as the delay had become prolonged and frustrating.

Nick’s Explanation

Nick’s response was practical and direct. In anonymised form, his position was:

“I will follow up with HMRC once more. If there is still no progress, I will raise a formal complaint.”

After speaking to HMRC again, the update was that the payment had been made and should arrive within the next few days.

The key point from Nick’s explanation is that where a refund is already due, the issue becomes one of administration rather than substantive SDLT law. In those cases, the sensible approach is:

• confirm whether HMRC has actually issued the repayment;
• check whether there is a processing delay between issue and receipt;
• chase HMRC again if no payment arrives;
• escalate to a formal complaint if repeated follow-up does not resolve the matter.

The Law

SDLT is governed primarily by the Finance Act 2003. HMRC administers returns, amendments, claims and repayments under that framework. Where too much SDLT has been paid, a taxpayer may be entitled to repayment depending on the nature of the claim, for example:

• an amendment to a return;
• a claim for repayment of the higher rates on replacement of a main residence;
• a claim that the property was not suitable for use as a dwelling at the effective date of transaction;
• some other overpayment or correction accepted by HMRC.

Once HMRC accepts that a repayment is due, the remaining issue is generally administrative: whether the repayment has been processed, when it was issued, and whether it has been sent to the correct destination.

For higher rates replacement claims, the key statutory provisions are found in Schedule 4ZA to the Finance Act 2003. For amendments and overpayment relief issues, the wider SDLT machinery in the Finance Act 2003 is relevant. In practice, however, delayed payment disputes often turn less on legal interpretation and more on HMRC case handling.

Where a taxpayer argues that a property was uninhabitable or not suitable for use as a dwelling, readers should note that the condition threshold is now relatively high following Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799. Serious disrepair does not automatically mean the building was not suitable for use as a dwelling for SDLT purposes.

Analysis

The position can be analysed in stages.

1. First, identify whether the refund has actually been agreed. There is a difference between a claim being submitted, a claim being under review, and a repayment having been authorised.

2. Second, if HMRC says the repayment has been made, check whether that means:

   • the claim has been approved internally;
   • the repayment instruction has been issued;
   • the payment has physically left HMRC’s system.

3. Third, allow a short period for banking and processing. Even after HMRC says payment has been made, it may take a little time to reach the recipient.

4. Fourth, if the money still does not arrive, ask HMRC to trace the repayment. It may be necessary to confirm the payment method, the receiving account details already held on file, and whether any internal hold or mismatch has arisen.

5. Fifth, if repeated chasing produces no meaningful progress, escalate the matter through HMRC’s complaints process. A formal complaint is often the right next step where delay has become unreasonable.

In other words, once entitlement to the refund is no longer the problem, the practical question is how to force progress on payment. That is exactly the route Nick proposed: chase HMRC again, and if necessary make a formal complaint.

Outcome

The practical conclusion is straightforward. If an SDLT refund has not arrived, the first step is to confirm its status with HMRC. If HMRC confirms that payment has been made, the taxpayer should usually expect receipt within the next few days. If nothing arrives, the matter should be chased promptly and then escalated through a formal complaint if delay continues.

On the facts described here, the matter was resolved after further contact with HMRC, which confirmed that payment had been issued.

Practical Steps

If you are in the same position, the following steps are sensible:

• check whether your SDLT refund claim has actually been approved;
• ask HMRC whether repayment has been authorised or physically sent;
• confirm when HMRC says the payment was made;
• check the bank account details or repayment route previously provided;
• allow a short period for the money to clear if HMRC says payment has been issued;
• if the funds still do not arrive, ask HMRC to trace the payment;
• if there is still no progress, make a formal complaint to HMRC.

Keep copies of all correspondence, notes of calls, and any confirmation from HMRC that the repayment has been processed. That evidence is useful if you need to escalate matters.

Conclusion

If your SDLT refund has been agreed but the money has not arrived, the issue is usually administrative rather than legal. The right approach is to chase HMRC, confirm whether payment has actually been issued, and escalate to a formal complaint if the delay continues.

Legal References Used

• Finance Act 2003
• Finance Act 2003, Schedule 4ZA
• Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799

This page was last updated on 22 March 2026.

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