How long does an HMRC SDLT refund take when extra evidence has been requested?

Introduction

Many people who are waiting for a Stamp Duty Land Tax refund want to know how long HMRC will take to pay once further information has been sent in. This often happens where the refund depends on a technical point, such as whether the buyer held a “major interest” in another dwelling at the time of purchase. In practice, the answer usually depends on whether HMRC has completed its initial review, whether it has all required authority documents, and how large its current processing backlog is.

The Question

A buyer had made an SDLT reclaim and HMRC asked for extra information before payment could be released. The buyer wanted to know when the refund was likely to arrive, especially because the money was needed urgently. The underlying issue in the reclaim was whether, on the date of purchase of the new home, the buyer had a “major interest” in another dwelling for the purposes of the higher rates of SDLT.

Nick’s Explanation

Nick explained that the updated case papers had been sent to HMRC together with the necessary joint authority and a covering letter setting out the position clearly. He said that HMRC had already carried out an initial assessment and that the remaining issue was confirmation of authority to act.

In anonymised form, his key points were:

• the additional documents had been submitted to HMRC;
• HMRC had already done an initial review of the claim;
• the case turned on the argument that the buyer did not hold a “major interest” in another property at the relevant date;
• HMRC later confirmed receipt of the further letter and indicated that there was a backlog;
• the expected processing time was around 15 to 30 working days after receipt of the extra material.

Nick also noted that, although the definition of “major interest” can be debatable in some fact patterns, the practical argument being advanced was that the buyer had never obtained any real benefit from the other dwelling said to trigger the higher rates.

The Law

The higher rates of SDLT for additional dwellings are contained in Schedule 4ZA to the Finance Act 2003. Broadly, the surcharge can apply where, at the end of the day of the transaction, the purchaser owns a major interest in another dwelling and is not replacing their only or main residence.

The concept of a “major interest” is important. In SDLT, this usually means either a freehold interest or a leasehold interest originally granted for a term of more than 21 years. The detailed statutory framework sits within the Finance Act 2003 and must be applied to the facts as they stood on the effective date of the transaction.

Where too much SDLT has been paid, a claim for repayment or amendment may be made, subject to the relevant procedural rules and time limits. HMRC may ask for supporting evidence if the position is not straightforward.

If the issue concerns whether a property was uninhabitable or not suitable for use as a dwelling, readers should note that the threshold is now relatively high following Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799. That authority makes clear that not every defect or need for repair will be enough.

Analysis

The practical analysis in a case like this usually has two parts: the legal merits of the reclaim and the administrative timing of the payment.

First, on the legal merits, HMRC will look at whether the buyer really held a chargeable “major interest” in another dwelling at the date of the purchase. That is a legal test, not just a question of informal connection with another property. If the buyer did not own a qualifying interest at that point, the higher rates may not have been due.

Secondly, HMRC will often require clear documentary support. That may include:

• authority forms signed by all relevant parties;
• a covering letter explaining the legal basis of the reclaim;
• documents showing the nature of the buyer’s interest, if any, in the other property;
• evidence that the original SDLT treatment was incorrect.

Where HMRC has already completed an initial assessment and only asks for authority or confirmation documents, that is often a sign that the claim is moving forward rather than being rejected on the merits. It does not guarantee success, but it usually means the file is active and under consideration.

As for timing, HMRC refund processing is often slower than claimants expect. Even after the legal position has been explained, payment may still be delayed by internal handling times, post room delays, caseworker allocation and backlog levels. In the material provided here, HMRC indicated that cases of this kind were taking about 15 to 30 working days after receipt of the additional information. That is a realistic administrative estimate rather than a strict legal deadline.

So, if HMRC has confirmed receipt of the extra documents and said the case is in the queue for processing, the likely position is that the refund is pending administrative completion rather than awaiting a fresh substantive review from the beginning.

Outcome

The practical takeaway is that, once HMRC has the further evidence and any required joint authority, an SDLT refund may often be paid within roughly 15 to 30 working days, although delays are common where HMRC has a backlog. If HMRC has already carried out an initial assessment, that is generally a positive sign, but it is not the same as a final approval until payment is actually issued.

Practical Steps

If you are in a similar position, the sensible next steps are:

• check the date HMRC actually received the additional documents;
• make sure all authority forms have been signed correctly by every relevant person;
• confirm that HMRC has linked the extra information to the correct SDLT reclaim;
• keep copies of the covering letter and supporting evidence;
• if more than 30 working days have passed since receipt, chase HMRC for an update;
• review carefully whether your reclaim depends on the meaning of “major interest”, replacement of only or main residence, or another specific Schedule 4ZA rule;
• if your argument is based on a property being uninhabitable, assess it against the stricter approach confirmed in Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799.

Conclusion

If HMRC has asked for extra evidence on an SDLT refund claim, payment is often not immediate even where the case appears strong. Once the missing documents are with HMRC, a waiting period of around 15 to 30 working days is common, especially where there is a backlog. The central legal issue in some reclaim cases will be whether the buyer truly held a “major interest” in another dwelling on the purchase date.

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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