Can you reclaim SDLT on carpets, curtains, blinds and other contents bought with a house?

Introduction

Many buyers ask whether part of the price they paid for a home can be treated as payment for removable items rather than for the land itself. This matters because Stamp Duty Land Tax (SDLT) is charged on consideration for land transactions, not on the price paid for certain removable contents or chattels.

A common example is a house sold with carpets, curtains, blinds, light fittings or freestanding items, where the agreed price may have reflected the fact that the property was being sold “as seen”. The key issue is whether those items were genuinely separate chattels and, if so, what their open market value was at the date of purchase.

The Question

A buyer purchased a higher-value residential property for around £1.52 million. The sellers were downsizing and the deal appears to have included a range of household items and fitted soft furnishings, with only some personal possessions excluded. After completion, the buyer prepared a spreadsheet estimating that the contents included in the deal were worth about £92,175 and asked whether the SDLT return could be amended to reclaim tax on that part of the price.

The buyer had photographs and supporting material and wanted to know both the likely reclaim position and the practical process for making an amendment within the permitted time limit.

Nick’s Explanation

Nick’s main point was that HMRC accepts that SDLT is not charged on the value of genuine chattels, but the valuation must reflect open market value rather than replacement cost or what the buyer personally felt the items were worth.

In anonymised form, his explanation was:

“HMRC’s guidance on the valuation of chattels can be found in SDLTM04010. In straightforward terms, the valuation must reflect the open market value. However, there can sometimes be differing views on what constitutes open market value.

As the property was purchased within the last 12 months, one can amend the stamp duty return without having to provide a detailed explanation for the amendment. The best approach is to submit the amendment to HMRC while keeping the information provided to a minimum. That said, it is important to keep all supporting documents and details on hand, so they are available if HMRC opens an inquiry.”

That is a sensible summary of the practical position. The right to amend may exist, but the success of any reclaim depends on whether the items are legally chattels and whether the values claimed are realistic and evidence-based.

The Law

SDLT is charged under the Finance Act 2003 on chargeable consideration for land transactions. In broad terms, tax is paid on the amount given for the land and interests in land. It is not charged on sums properly attributable to items that are not part of the land transaction, such as genuine movable chattels.

The distinction between fixtures and chattels is important:

• A fixture is treated as part of the land.
• A chattel is a movable item and is not itself land.

For SDLT purposes, if part of the total price is genuinely paid for chattels, that part should not form part of the chargeable consideration for SDLT.

HMRC’s guidance at SDLTM04010 explains that where a transaction includes both land and removable items, a just and reasonable apportionment is needed. HMRC will expect the value used to be the open market value of the chattels at the effective date of the transaction, not the original purchase price, insurance value or replacement cost.

The buyer may amend an SDLT return within the statutory amendment window. In practice, where the transaction is still within that period, an amendment can be made without sending a full evidential bundle at the outset. However, HMRC may later enquire into the return and ask for the supporting material.

Analysis

The analysis usually works in five steps.

First, identify which items are capable of being treated as chattels at all. Freestanding furniture and removable white goods are the clearest examples. Carpets are often treated as chattels. Curtains may also be chattels. Blinds, shutters and some lighting are more difficult because some items may be sufficiently attached to the property to count as fixtures. Fitted wardrobes, built-in appliances and many permanently installed items will usually not qualify.

Second, separate legal classification from common-sense description. Just because an item was included in the sale does not mean it was a chattel. Equally, just because an item is physically attached in some way does not automatically make it a fixture. The legal test looks at the degree and purpose of annexation.

Third, value the qualifying items at open market value as second-hand items on the date of completion. This is where many claims become overstated. A buyer may think recently installed carpets, blinds or decorative items are worth a great deal because they would be expensive to replace. HMRC is more interested in what a willing buyer would actually pay for those used items in the open market as part of a separate sale. That figure is often much lower than replacement cost.

Fourth, consider whether the figures are commercially credible in the context of the transaction. A schedule totalling about £92,175 may be possible in a large, well-fitted house, but HMRC is likely to look closely at the detail. Large totals for carpets, curtains, blinds and similar items can attract scrutiny because these are exactly the categories where replacement cost is often confused with market value.

Fifth, consider timing and process. If the purchase completed within the amendment period, an amended SDLT return can be filed. That is procedurally simpler than trying to reopen an older transaction. Even so, the buyer should keep the contract, transfer, completion statement, SDLT5, photographs, itemised schedule and valuation basis ready in case HMRC asks questions.

It is also worth noting what this case is not about. This is not an “uninhabitable” or “not suitable for use” claim. Those cases concern whether the dwelling was in such poor condition at the effective date that it did not count as residential property for SDLT purposes. The threshold for that argument is now relatively high following Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799. A contents claim is a different exercise: it is about excluding genuine chattels from the chargeable consideration, not arguing that the property was uninhabitable.

Outcome

A buyer in this position may be able to reclaim SDLT on the part of the purchase price properly attributable to genuine chattels, but only if:

• the items claimed are truly chattels rather than fixtures;
• the values used are open market values at the completion date; and
• the SDLT return is amended within the allowed time.

A schedule based on replacement cost, installation cost or optimistic estimates is vulnerable to challenge. The stronger the evidence and the more realistic the valuation, the better the position.

Practical Steps

If you are assessing a similar claim, the usual next steps are:

1. Obtain the key transaction documents, including the contract, TR1, completion statement and SDLT5.
2. Prepare a detailed schedule of items said to be included in the price.
3. Separate likely chattels from likely fixtures.
4. Value only the qualifying chattels at realistic second-hand open market value.
5. Keep photographs, sales particulars and any correspondence showing what was included.
6. Check whether the transaction is still within the amendment window for the SDLT return.
7. If an amendment is made, retain all evidence in case HMRC opens an enquiry.

Readers should be especially careful with carpets, blinds, shutters, fitted lighting and similar items because classification and valuation can be contentious.

Conclusion

Yes, SDLT can sometimes be reclaimed where part of the purchase price was genuinely paid for removable contents rather than for the property itself. The real issues are not whether the items were expensive when new, but whether they were legally chattels and what their true open market value was when the property was bought.

Legal References Used

• Finance Act 2003
• HMRC Stamp Duty Land Tax Manual, SDLTM04010
• 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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