Stamp Duty rules are so complicated it can take up to 40 days to contact HM Revenue & Customs (HMRC) for official advice – amid news that the Treasury is considering cutting property tax for first-time buyers and energy efficient homemovers.
The figures, reported by The Telegraph, suggest that the introduction of a surcharge on additional property purchases in April last year has resulted in a spike in queries being made to the tax office.
HMRC’s customer service helpline allegedly received more than 5,000 questions regarding Stamp Duty in three months after the surcharge was introduced, The Telegraph revealed.
It said “many readers continue to report receiving garbled, contradictory advice from the tax officials”, while in other cases, homemovers are waiting up to two months for questions to be answers.
The surcharge, introduced in April 2016, sees homeowners pay an additional three per cent Stamp Duty on top of the standard rate on all additional properties. The measure was designed to cut landlords out of the market, paving the way for first-time buyers to step onto the property ladder.
However, the scheme can become complex in certain circumstances – in divorce, for example.
A spokesman for HMRC said it was “inevitable” that complex issues can take longer to solve.
“Our advisers provide practical advice over the phone on a wide range of stamp duty land tax issues, quickly and accurately,” he added.
“HMRC has provided a great deal of practical advice and guidance particularly on the higher rates of stamp duty land tax and by working with taxpayer representatives we aim to make things as easy as possible.”
Next month, the Chancellor is expected to announce several changes to Stamp Duty which may confuse the scheme further. These include a cut in Stamp Duty for first-time buyers, as well as reducing the tax for homemovers who sell an energy-efficient property.