This case illustrates why pre-exchange SDLT reviews matter. The conveyancer’s calculation was reasonable on the information they had — but conveyancers are not tax specialists, and their role is to process the transaction, not to interrogate the tax treatment. That’s where a specialist property accountant adds value. In this case, the building included a ground-floor unit let on a separate commercial lease. That single detail changed the entire SDLT calculation. The relevant legislation treats transactions involving both residential and non-residential elements under a different rate schedule. The rates are lower in many bands, and critically, the 3% higher rates surcharge does not apply. We reviewed the title register, existing leases, and floor plans before preparing a revised computation with supporting analysis. The solicitor adopted the revised calculation, and the return was filed on the correct basis. The client’s liability reduced from around £74,000 to around £11,000. No reclaim was needed because the review happened before exchange — which is always the preferred position. Reclaims are possible, but they take time and involve HMRC scrutiny that can be avoided entirely by getting the calculation right first.
