Time limit to make an amendment to a stamp duty land tax return

The taxpayer entered into two contracts to buy Gordon House. The first was for an initial 25-year lease at a cost of £25m and the second was for a contracted-out lease for a 201-year term for £48m payable in four instalments. The initial lease was granted in October 2012 the contracted-out lease in April 2019. The taxpayer paid stamp duty land tax on the initial lease and the ‘substantial performance of the agreement’ for the contracted-out lease.

In April 2014 the taxpayer gifted the property to his brother NC ‘in consideration of natural love and affection’. Under a deed of novation NC was then responsible for paying the remaining instalments. He also was liable to stamp duty land tax on the contracted-out lease. The taxpayer therefore claimed a repayment of the stamp duty land tax he had paid on this lease.

HMRC refused on the...