MDR Claims Ltd is a claims management company for negligent tax advice given during real estate conveyances. Whilst this may seem a niche area it is something that affects millions every year.

Investors, businesses and private individuals put their trust in their solicitors to handle their conveyance in the correct manner. Poor advice is not necessarily negligent simply because it is poor. However, if advice is factually incorrect, based on out of date knowledge or simply does not have its limitations clearly defined it could be negligent.

We put the interests of our clients at the centre of everything we do. Unfortunately not all professional firms are cast from the same mould. When the advice you have been given falls short of the correct standard you may have a case for negligence and be entitled to seek financial compensation for the loss you suffered. This unfortunately is not normally a straight forward battle to fight on your own.

As claims managers for taxation related legal negligence claims we can assist you first in assessing if you have the basis of a case and then in-conjunction with our solicitors pursue the negligent advisor to get your money back.

We can assist in a myriad of scenarios, however we have identified two keys areas many have, and still are, being given incorrect or incomplete advice on. These are detailed below.

Multiple dwelling relief 'MDR':

If you have purchased multiple dwellings (e.g. a building with 10 flats in, even if on one title) or a link transaction involving multiple residential properties then potentially you could have claimed MDR. MDR allows you to pay stamp duty land tax 'SDLT' at the rate applicable to the average value of each dwelling (min 1%), as opposed to the total. This can make a huge difference to the total amount of tax due as shown by the example below

MDR claimed Poorly advised
Purchase price £1,500,000 £1,500,000
Dwellings 10 10
Average value £150,000 n/a
SDLT rate 1% 4%*
TAX due £15,000 £60,000
Overpayment n/a £45,000

-Please note this example is based on the old slab SDLT
-*10 units should be treated as commercial, therefore 4% SDLT

Capital Allowances:

The legislation relating to the treatment of capital allowance on fixtures and how these are handled in a conveyance has changed dramatically over the last few years. If the new rules are not addressed correctly then both the purchaser and vendors stand to lose, even when no allowances have been claimed in the past. These allowances can make up a substantial percentage of a buildings value and losing them carries significant fiscal implications.

We see accurate advice on capital allowances as a key component of a commercial conveyance, or for that matter any conveyance where they are in question, and therefore under the duty of care of your conveyancing solicitor to provide adequate advice.

At this stage you may not be aware of where the deficiencies are in the advice previously given or what sort of financial loss, if any, you have suffered. After all it is difficult to know what we haven't been told!