Higher rate paid on second property bought after divorce

The taxpayer who was recently divorced bought a property in August 2016. Her conveyancer applied the higher rate of stamp duty land tax because the taxpayer’s name remained on the title of the matrimonial property – in which her former spouse lived.

She wrote to HMRC claiming that she should pay the normal rate because the arrangement with the marital home was part of the divorce settlement. HMRC sent her a factsheet which explained she could amend the return within 12 months of filing it. However it said the higher rate was the correct one.

The taxpayer appealed and HMRC applied to have it struck out.

The First-tier Tribunal found that because no amendment was made to the return HMRC did not enquire into it and no discovery assessment was issued it had no jurisdiction to hear the appeal.

However the judge...