- The calculator on the HMRC website does not take account of possible discounts
- The software apparently does not separate homes from mixed-used properties
- HM Revenue and Customs are reportedly dealing with up to
Homebuyers may be due repayments worth up to £2billion after being overcharged for stamp duty because of a faulty online calculator, it has emerged.
The software on the HMRC website reportedly does not take account of factors such as farmland or a ‘granny annexe’ which can lead to discounts in stamp duty.
The error has led to as many as one six calculations being made wrongly, as many lawyers use the official tool to work out the amount of tax due, according to advice company Cornerstone Tax.
The problem has arisen because the calculator does not distinguish between homes and mixed-used properties, according to The Times.
The software on the HMRC website reportedly does not take account of factors such as farmland or a ‘granny annexe’. Pictured: HM Revenue and Customs
Stamp duty of five per cent is due on mixed-used properties whereas 12 per cent is paid on homes.
The newspaper reports that stamp duty revenues have almost doubled in five years, reaching some £13billion last year.
Cornerstone Tax said HRMC are apparently dealing with up to 900 cases a month.
Sarah Dwight, a solicitor, said: ‘A lot of the calculators are not up to it.
‘We write to HMRC for guidance but we’re finding a long turnaround time, often 28 days, and that doesn’t help the chain if someone is moving house.’
HMRC claimed their tool served as a ‘guide only’ and that ‘all reliefs are clearly signposted on stamp duty land tax returns’.
Cornerstone Tax said HRMC are apparently dealing with up to 900 cases a month