HM Revenue & Customs is chasing 1,200 people who have used stamp duty avoidance schemes to avoid paying the tax, costing the Government £35m in tax revenues.
Earlier this year, HMRC ran a data matching exercise comparing data held by the Land Registry with stamp duty returns held by HMRC.
This revealed that through the use of these schemes about 1,200 people have not paid the right amount of stamp duty, costing the Government around £35m in uncollected tax revenues.
A spokesman says: “We identified 1200 cases where marketed avoidance schemes have been employed to artificially reduce stamp duty land tax due on property transactions. Left unchallenged these schemes would potentially deny the country some £35m in vital tax revenues whilst giving those who used these schemes an unfair financial advantage over the majority of property purchasers who play by the rules.
“We wrote out to the 1200 people who have taken up these avoidance products setting out the correct tax position, ensuring a fair and level playing field for all property purchasers.”