A Court of Appeal ruling established that homes needing repairs still require full Stamp Duty, contradicting claims of uninhabitability. Buyers of fixer-uppers are often misled by agents promising refunds based on false claims that their homes are uninhabitable. The HMRC maintains that unless a property is completely derelict, it is subject to standard residential tax rates. Many homeowners suffer financial losses when these refund claims are rejected, and they face penalties as a result.
The court ruling clarified that even homes in poor condition still attract full residential Stamp Duty, regardless of whether they can be immediately inhabited.
HMRC is targeting dishonest agents who promise large refunds by falsely claiming properties were "uninhabitable" at the time of purchase.
The ruling emphasized that unless a property is entirely derelict and unable to function as a home, it must be taxed at the standard residential rate.
Many buyers are misled into thinking they can reclaim a part of their Stamp Duty bill, leading to significant financial repercussions when claims are rejected.
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