Situation 12
HMRC enquiry
Where a return or an amendment is under enquiry, the position needs to be set out properly, in writing, on the evidence, and early.
The short answer
Enquiries are won or lost on facts and documents rather than on argument. The first substantive letter matters more than anything that comes after it, which is why it is worth getting the analysis straight before responding.
Where this usually goes wrong
These are the patterns we see most often. Each one is a situation where the obvious answer and the correct answer are different.
Answering before the position is settled
An early inconsistent answer is difficult to walk back.
Evidence that does not exist
A position that depended on documents nobody created is a weak position, and better identified now.
The adviser who made the claim
Where a repayment agent submitted the claim, they may not be the right person to defend it, and may no longer be contactable.
Underestimating the penalty position
Behaviour and disclosure affect the outcome, and both are influenced by how the enquiry is handled.
Missing deadlines
Enquiry correspondence carries deadlines and rights that are lost by inaction.
The facts that decide it
If you want to know where you stand before you speak to anyone, these are the questions we will ask. Having the answers ready is most of the work.
- 01What has HMRC actually asked, and by when?The scope of the request determines what has to be answered and in what order.
- 02What was the original return, and who prepared it?The filed position is the starting point for anything said in response.
- 03What are the underlying facts and what documents exist?A response can only be built on documents that can actually be produced.
- 04Has anything already been said to HMRC, and by whom?Earlier statements form part of the record and have to be reconciled with what follows.
- 05What is the amount in dispute?It frames what is at stake for you and how much work the matter warrants.
- 06Is a repayment agent involved?It affects who holds the papers and who can explain what was submitted.
- 07What is the taxpayer's own understanding of the position?You are responsible for the return, so your own account of the facts matters directly.
- 08Are there other transactions that might be affected?Related transactions may need the same analysis before anything is put in writing.
What we would want to see
The analysis is only as good as the documents behind it. For this situation, that normally means:
- HMRC's correspondence in full, with dates
- The SDLT return as filed
- Completion statement, where available
- Details of every property interest held
- Evidence of any disposal and its date
- Details of all purchasers and their positions
- The UTRN for the transaction
- Correspondence with the conveyancer on the point
Questions we get on this
HMRC has written to me. Should I reply straight away?
Reply, but reply once the position is settled. The first substantive letter carries more weight than anything that follows it, and an answer given before the facts and documents have been pinned down is difficult to walk back later.
The agent who made the claim has stopped responding.
That is common. We work from the return, the correspondence and the underlying documents rather than from what the agent said about them. The correct figure is established first, and only then do we advise on what can properly be put to HMRC.
Will you defend the position I have already taken?
Only if it holds up on the facts and the documents. We establish what the correct figure was, then advise on what can properly be said about any difference and what the consequences of each route are. Our fee is fixed and does not depend on the outcome.
Will you just tell me what I want to hear?
No. Our fee is fixed and does not depend on the outcome, which means we have no interest in finding a saving that is not there. If the original return was right, we will tell you that in writing, and you will have a reasoned position on file if it is ever looked at.
This page is general information only and is not advice. It applies to transactions in England and Northern Ireland. Reviewed 16 August 2026.