In BTR Core Fund JPUT v HMRC [2026] UKUT 00027, the Upper Tribunal (UT) found that a Stamp Duty Land Tax (SDLT) Overpayment Relief claim was valid. The SDLT overpayment was not by reason of a mistake in a claim or election, but by reason of the wrong choice of SDLT rate.
In April 2019, BTR Core Fund JPUT (BTR) acquired the leasehold estate of a property in Manchester consisting of 350 dwellings and unlet commercial premises.
- BTR submitted a Stamp Duty Land Tax (SDLT) return for the transaction, claiming Multiple Dwellings Relief (MDR).
- When BTR completed the SDLT return, it calculated MDR in accordance with HMRC’s prevailing guidance at that time; this stated that the Higher rate of SDLT would apply to the transaction.
- In November 2020, after the Amendment window for BTR’s SDLT return (and MDR claim) had expired, HMRC changed its guidance, resulting in BTR’s acquisition not being a higher rates transaction.
- Therefore, in early 2021, BTR claimed Overpayment Relief of £3,064,633, to reflect HMRC’s updated guidance. The time limit for such a claim was 15 April 2023.
- BTR’s Overpayment Relief claim was made on the basis that there was an error in the self-assessed SDLT calculation: the MDR calculation should have used the residential standard rates and not the higher rates.
- HMRC opened a check into the Overpayment Relief claim and, on 25 March 2022, issued a Closure notice concluding that they were not liable to give effect to the claim.
- After this decision was upheld by HMRC in an independent review, BTR Appealed to the First Tier Tribunal (FTT).
Under the Overpayment Relief legislation, HMRC are not liable to give effect to a claim where, under ‘Case A’, the SDLT paid, or liable to be paid, is excessive by reason of a mistake in a claim or election.
- BTR’s view was that the relevant mistake was not in the making of a claim, but in the calculation of the tax chargeable.
- HMRC’s case was that the calculation was part of making the claim, so the mistake was in the claim.
The FTT agreed with HMRC. Its essential reasoning was that the result of the MDR calculation, once entered in the SDLT return, was part of the claim.
BTR appealed to the Upper Tribunal (UT), which found that:
- It was not as simple as saying ‘you made a claim and you made a mistake, so you must have made a mistake in a claim’.
- The wording of the legislation, namely ‘by reason of’, imposes a particular test.
- BTR’s claim for MDR was correctly made and complied with the legislative requirements, as:
- It was made in the land transaction return.
- In the return, the claim was properly made by the completion of the answers to Question 9.
- No other requirements applied to making the MDR claim.
- Significantly, there was no requirement to quantify the amount of the claim.
- The mistake that was made arose by reason of the wrong choice of SDLT rate, which fed into the calculation of the tax chargeable.
- The mistake did not arise by reason of a mistake in a claim. As a result, Case A did not apply.
In effect, the UT found that claiming MDR and calculating MDR were two separate matters: the error was in the calculation, not the claim.
The appeal was allowed.
Useful guides on this topic
Overpayment Relief
What is Overpayment Relief? When can you claim Overpayment Relief? What are the conditions for a claim for Overpayment Relief? What are the time limits for a claim for Overpayment Relief?
SDLT: Amending returns & refunds
How do I amend an SDLT return? When can I amend an SDLT return? How do I claim an SDLT refund? How do I deal with contingent consideration?
SDLT: Stamp Duty Land Tax, start here
What is SDLT? What are the SDLT rates? What is exempt from SDLT? What reliefs are available? When are returns due? When can you amend a return?
SDLT: At a glance, Stamp Duty Land Tax, rates & allowances
What is Stamp Duty Land Tax (SDLT)? What are the rates of Stamp Duty Land Tax (SDLT)?
SDLT: Multiple Dwellings Relief (MDR)
What is Multiple Dwellings Relief (MDR) for Stamp Duty Land Tax purposes? When does it apply and how is it claimed?
This relief ceased to apply from 1 June 2024.
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