What if HMRC sends more than one SDLT letter about the same issue?

Introduction

People often worry when HMRC sends repeated letters about Stamp Duty Land Tax (SDLT), especially where the letters appear to relate to the same transaction or the same point under review. A common question is whether multiple letters mean multiple problems, or whether HMRC is simply progressing the same matter through its normal process.

This article explains, in general terms, what it usually means if further similar letters are expected from HMRC, and how to approach them calmly and methodically.

The Question

A taxpayer involved in an SDLT matter was told to expect two more similar letters from HMRC. The concern was how to understand those letters and what practical significance they might have for the case.

Nick’s Explanation

Nick’s response, in substance, was brief but clear: if further similar letters are expected from HMRC, they should be treated as part of the same ongoing process rather than as something unusual in themselves.

In anonymised form, the point was that the taxpayer should expect the correspondence and review each letter carefully, because HMRC often issues more than one communication where it is gathering information, progressing a compliance check, or writing separately in relation to connected parties or transactions.

The key practical message is that receiving more than one letter does not automatically change the legal position. What matters is:

• what each letter actually says;
• whether HMRC is opening an enquiry, asking for information, or stating a conclusion;
• whether any deadline is given; and
• whether the letters concern the same return, linked transactions, or different taxpayers involved in the same arrangement.

The Law

SDLT is governed mainly by the Finance Act 2003. HMRC has powers to administer the tax, check returns, request information in the proper circumstances, and amend or challenge SDLT treatment where the legislation allows.

In broad terms, the legal framework includes:

• the charge to SDLT under Part 4 of the Finance Act 2003;
• the filing of land transaction returns and self-assessment of tax;
• HMRC compliance and enquiry powers in relation to SDLT returns;
• discovery and amendment powers in some cases; and
• appeal rights where HMRC issues a decision or assessment that the taxpayer disputes.

Not every HMRC letter has the same legal effect. Some letters are purely administrative. Others may formally open an enquiry, request documents, set out HMRC’s view, or issue an assessment. The taxpayer’s position depends on the nature of the letter, not simply on the fact that HMRC has written more than once.

Analysis

If HMRC says, or it is known, that two more similar letters are likely to arrive, the position should usually be analysed in stages.

1. Identify whether the letters relate to one transaction or several.

   Sometimes HMRC writes separately where there are joint purchasers, linked transactions, multiple returns, or more than one legal person involved. Separate letters do not necessarily mean separate substantive disputes.

2. Check whether the letters are identical or merely similar.

   A similar letter may repeat the same request or concern the same issue but still be addressed to a different party or refer to a different return.

3. Look for the legal status of the letter.

   The important question is whether the letter is:

   • an informal request for clarification;
   • a formal enquiry or compliance check;
   • a request for supporting evidence;
   • a closure or conclusion letter; or
   • an assessment or decision carrying appeal rights.

4. Check for deadlines.

   HMRC letters often specify a date for reply. Missing that date can make matters harder, even where the underlying tax position is sound.

5. Make sure the response is consistent.

   If several similar letters are received, the factual explanation and documents provided should be consistent across all replies. Inconsistency can create avoidable difficulty.

6. Separate process from substance.

   The arrival of further letters is a process issue. The real substantive issue remains whether the SDLT treatment originally adopted was correct under the Finance Act 2003.

In many SDLT cases, taxpayers become concerned simply because HMRC correspondence arrives in stages. That is understandable, but the practical approach is to treat each letter as part of a structured review and to respond according to its contents.

If the underlying issue concerns whether a property was unsuitable for use as a dwelling at the effective date of transaction, the legal test should be considered carefully. 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 at the relevant date.

Outcome

The practical conclusion is that receiving two more similar letters from HMRC does not, by itself, indicate a new or different tax problem. It usually means HMRC is continuing its process, possibly across multiple connected files or parties.

The taxpayer should focus on the legal effect of each letter, comply with any deadlines, and ensure that the factual and legal position is presented clearly and consistently.

Practical Steps

1. Read each HMRC letter in full and keep copies together.
2. Check the tax year, transaction date, property details, and taxpayer name on each letter to see whether they concern the same matter or connected matters.
3. Note any response deadline immediately.
4. Identify whether HMRC is asking for information, opening an enquiry, or making a decision.
5. Prepare a single chronology of events and a single set of supporting documents so that all replies remain consistent.
6. If the issue concerns a claim for non-residential rates or mixed-use treatment, review the exact statutory basis for the claim.
7. If the issue concerns whether a property was uninhabitable, assess the facts against the current high threshold confirmed in Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799.
8. Where the letter appears formal or potentially adverse, take advice before replying.

Conclusion

If more similar HMRC letters are expected, that is usually a sign of the matter continuing through HMRC’s normal administrative process. The key is not the number of letters, but what each one legally does. Careful reading, timely response, and a consistent explanation are the most important next steps.

Legal References Used

• Finance Act 2003, Part 4
• 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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