Max Schofield advises on “new negligence outbreak” over stamp duty land tax

24th November 2020

Property conveyancing solicitors and tax practitioners involved with stamp duty land tax need to be wary after a rise in claims against them for professional negligence for failing to advise on, or failure to submit a return for, Multiple Dwelling Relief (MDR).

3PB’s commercial and tax specialist barrister Max SchofieldMax SchofieldCall: 2016, who has described the present spike in claims as  a “new negligence outbreak”, explains the importance of multiple dwellings relief when considering stamp duty land tax in a recent feature for Taxation magazine.

Key points covered in the article include:

  • Multiple dwellings relief allows SDLT to be calculated by reference to the average consideration
  • Planning permission may not be a definitive clue as to whether multiple dwellings relief is due
  • Is a dwelling suitable for use on a stand-alone basis?
  • Did the advice fall below the standard that could be expected of a reasonably competent practitioner?
  • Retain records to show that Multiple Dwellings Relief was considered

To read the full article, please click here.

To instruct Max in relation to a claim about tax or professional negligence, please contact him directly on max.schofield@3pb.co.uk or via his clerk David Fielder on david.fielder@3pb.co.uk or by calling him on 020 7583 8055.