Can a stamp duty reclaim company ask for ID, signed authority and payment after an HMRC refund?

Introduction

People often ask what documents a stamp duty reclaim company can properly request, and what usually happens once a reclaim has been submitted to HMRC and a refund is received. A common concern is whether it is normal to be asked for signed authority, proof of identity and payment of a success fee after the refund arrives.

This article turns a private email exchange into a general public-facing explanation. It looks at a typical reclaim process, why ID and authority documents are usually requested, and what practical steps a claimant should take before paying an invoice.

The Question

A taxpayer instructed a reclaim firm to pursue a stamp duty refund claim. During the process, the firm asked for:

• a signed authorisation letter;
• acceptance of terms of agreement, including electronic signature;
• a copy of photographic ID for compliance purposes.

Later, the taxpayer was told that the case was being prepared for submission to HMRC. After that, the taxpayer received a refund and the firm asked for confirmation of the amount received so that it could issue its invoice. There were then problems with the payment link and the invoice currency, and the taxpayer wanted to know the proper next steps.

Nick’s Explanation

Nick’s explanation, put into general terms, was that the reclaim had progressed to the point where HMRC had issued a repayment, and the next step was for the firm to raise its invoice based on the refund actually received. He also acknowledged the payment-link issue and said he would check what had gone wrong.

The key points from his explanation were:

• the case team had prepared the matter for submission to HMRC;
• once the taxpayer confirmed that HMRC had paid the refund, the firm needed the exact amount received to prepare the invoice correctly;
• where the payment system was not working properly, that was an administrative issue rather than a legal one, and it needed to be corrected before payment could be made.

In anonymised form, Nick’s position can be summarised like this: the refund had apparently been received, the fee invoice would be calculated by reference to that refund, and the payment process needed to be fixed so the client could pay in the correct currency using a working link or an alternative transfer method.

The Law

Stamp Duty Land Tax is governed mainly by the Finance Act 2003. A claim for repayment usually depends on whether too much SDLT was paid under the legislation as applied to the facts of the purchase.

Where a reclaim agent is acting for a taxpayer, there are two separate legal relationships:

1. the taxpayer’s substantive tax position with HMRC; and
2. the contractual relationship between the taxpayer and the reclaim agent.

The tax position depends on the legislation and any relevant case law. The agent’s right to be paid depends on the terms agreed with the client, including any success fee, authority to act, and invoicing terms.

In practice, reclaim firms commonly ask for:

• a signed letter of authority, so they can correspond with HMRC or act on the taxpayer’s behalf;
• proof of identity, as part of anti-money laundering and client due diligence procedures;
• acceptance of terms of business, which set out the fee basis and payment obligations.

If the reclaim itself was based on an argument that the dwelling was not suitable for use as a residence at the effective date of transaction, readers should note that the threshold is now relatively high following Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799. Ordinary disrepair, dated condition, or the need for renovation will often not be enough. The condition must be serious enough to take the property outside the concept of a dwelling for SDLT purposes.

Analysis

The position can be analysed in stages.

1. Authority and identity documents

   It is generally normal for a reclaim firm to ask for a signed authority and ID documents before progressing a tax reclaim. That does not by itself indicate any problem. The important question is whether those requests match the agreed terms and whether the taxpayer is comfortable that the firm is properly instructed.

2. Submission to HMRC

   If the firm says the case has been prepared and submitted, the taxpayer should be able to ask for confirmation of what was sent, on what basis the reclaim was made, and whether any correspondence from HMRC has been received.

3. HMRC repayment received

   If HMRC has paid a refund directly to the taxpayer, that usually indicates that HMRC accepted the reclaim, at least administratively. The amount received matters because many reclaim firms charge a percentage-based fee. The exact refund figure is therefore relevant to calculating the invoice.

4. Invoice and payment problems

   If the payment link does not work, or the invoice is issued in the wrong currency, the taxpayer should not guess the amount or pay through a defective system. The proper step is to ask for a corrected invoice showing the agreed fee in pounds sterling and a clear payment method.

5. Check the contract before paying

   The taxpayer should review the signed terms of agreement. The key points are the fee percentage, whether VAT applies, when payment becomes due, whether the fee is triggered by receipt of the refund, and whether the firm is entitled to invoice if HMRC pays the taxpayer directly.

6. Check the underlying reclaim basis

   If the reclaim was based on multiple dwellings relief, mixed-use treatment, replacement of a main residence, or a claim that the property was not suitable for use as a dwelling, the taxpayer should keep a record of the legal basis. That matters in case HMRC later reviews the repayment or asks further questions. In unsuitable-for-use cases especially, the current law is stricter after Mudan.

Outcome

The practical conclusion is that requests for signed authority, ID and confirmation of the refund amount are generally consistent with a normal stamp duty reclaim process. If HMRC has already paid the refund, the next step is usually for the reclaim firm to issue its fee invoice under the terms of engagement.

However, the taxpayer should only pay once they have:

• a correct invoice in the agreed currency;
• a working payment method or valid bank transfer details;
• confirmation that the amount invoiced matches the contract.

If the reclaim was based on the property being uninhabitable or not suitable for use, the taxpayer should also be aware that this area is now harder to establish than many older online articles suggest, because the threshold is relatively high following Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799.

Practical Steps

1. Read the signed terms of agreement carefully and identify the fee basis, VAT position and due date.
2. Keep the HMRC repayment evidence, including the amount received and the date of receipt.
3. Ask the reclaim firm for a corrected invoice if the currency or payment link is wrong.
4. Request a simple written breakdown showing how the invoice has been calculated.
5. Keep copies of the authority letter, ID documents provided, and any submission confirmation from the firm.
6. If you are unsure whether the reclaim itself was legally sound, ask for the technical basis of the claim in writing.
7. If the reclaim relied on the property being uninhabitable, compare the facts against the stricter approach now confirmed in Mudan.

Conclusion

In a standard SDLT reclaim matter, it is normal for the agent to ask for signed authority, ID and then payment once HMRC has issued the refund. The main thing is to check that the invoice matches the agreed terms and that the payment arrangements are correct. If the reclaim rested on an uninhabitable-property argument, extra care is needed because the legal threshold is now relatively high after Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799.

Legal References Used

• Finance Act 2003
• 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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