STSM142120 | Stamp duty and SDRT Administration: SDRT Administration: post-payment checks

Background

HMRC processes a large volume of requests for Stamp Duty Reserve Tax (SDRT) repayments.

HMRC is provided with data on all transactions settled within CREST and maintains a database to allow the data to be interrogated. This allows high-level checks to be made on repayments automatically via the VERA system prior to repayment being made – for example that the transaction details are correct, the SDRT had been paid and the repayment request is in time.

Risk

HMRC Stamp Taxes operates a “process now, check later” regime for SDRT. VERA carries out basic checks prior to repayment being made but does not check the legislative position or test the validity of the reclaims.

Due to this, HMRC also carries out more detailed enquiries into repayments. These are usually made after repayment has been made and so are known as Post Payment Checks (PPC). Claimants should retain supporting documentation in case of an enquiry by HMRC.