Buyers who dodge tens of thousands of pounds in stamp duty by bogusly claiming that their property has a commercial or agricultural use are facing a clampdown.
The taxman wants to stop people wrongly saying their home is “mixed use”, or who pretend that a shed or swimming pool is a separate dwelling.
Launching a consultation on the clampdown yesterday, HM Revenue & Customs said that examples of abuse included a buyer claiming that a swimming pool and toilet at the end of their garden was a separate dwelling, while another buyer claimed that their garage could be a separate dwelling because it had a toilet.
“HMRC has seen an increase in incorrect claims for multiple dwellings relief,” it said.
Advisers say the practice has become hugely lucrative. Sean Randall, a partner at tax firm Blick Rothenberg, said that there were at least 10 “claims farmer” firms encouraging buyers to claim refunds. The top rate of mixed-use stamp duty is 5%, instead of 12%.
