Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what guidance HMRC has issued on second homes stamp duty tax (a) avoidance and (b) evasion, and the level of the penalties that should be applied.

HMRC’s guidance on purchases of additional dwellings is set out at the links below:

GOV.uk guidance

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

HMRC Stamp Duty Land Tax manual -

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09735

SDLT penalties for inaccurate returns are charged under Schedule 24 Finance Act 2007. HMRC’s approach to compliance (including Schedule 24 penalties) is set out in its Compliance Handbook. The Compliance Handbook pages on penalties can be found at the links below:

Compliance Handbook “Charging Penalties”

https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch400000

Compliance Handbook “Charging Penalties: establishing penalty behaviour”

https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch402050