How to Claim Back Stamp Duty from HMRC
Can you claim back stamp duty?
HMRC allows you to claim back the Additional Rate of stamp duty if you purchased your new main residence before you sold your previous main residence.
You have 3 years to sell your main residence (36 months) to be eligible. However, you only have 3 months after you complete your sale to apply to HMRC for your refund, or 12 months after the filing date of the SDLT return for your new main home.
What is the Additional Rate of Stamp Duty?
The second home additional stamp duty came into force on the 1st April 2016, which means individuals and companies may need to pay a higher rate of Stamp Duty Land Tax (SDLT) if they buy an additional property for more than £40,000, and still own another property.
The Additional Rate was 3% from the 1st April 2016 to the 31st March 2025 and increased to 5% from the 1st April 2025.
| Property Price | Standard Rate of Stamp Duty | Additional Home Rate (updated post Oct 2024 budget) | Non UK Resident Rate |
| £0 - £125,000 | 0% | 5% | 2% |
| £125,001 - £250,000 | 2% | 5% | 2% |
| £250,001 - £925,000 | 5% | 10% | 2% |
| £925,001 - £1.5 million | 10% | 15% | 2% |
| Over £1.5 million | 12% | 17% | 2% |
How do I claim back stamp duty?
You can apply to HMRC for a refund of the additional rate of stamp duty using a form SDLT16. You can download the form here: Apply for a refund of the higher rates of Stamp Duty Land Tax.
We offer a service to do this for you to save you time filling in the forms. Get in contact with us today on 0333 344 3234 (local call charges apply) / help@samconveyancing.co.uk, or Ask a Question.
What happens if it takes longer than 3 years to sell?
If you miss the 3-year deadline, HMRC may review your case if there was an acceptable reason for the delay in selling your previous main residence.
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Once you have sold your previous main residence, you can make your application for a refund and include a letter explaining the circumstances around why you failed to meet the deadline and include evidence.
You can write to: BT Stamp Duty Land Tax, HM Revenue and Customs, BX9 1HD.
How do you calculate what the higher rate is?
You can use our online stamp duty calculator to help you calculate the higher stamp duty rate.
Example of a stamp duty refund
Jane and Michael are married, selling their main residence and buying their new one. Jane and Michael lose their buyer, but continue to purchase their new main residence for £600,000.
Since they own two properties on completion, they must pay the higher rate for additional homes.
Based on the stamp duty rates on completion (post-April 2025), they pay stamp duty land tax of £50,000 (£20,000 standard rate, plus the higher rate of £30,000).
Jane and Michael sell their previous main residence 4 months later and then apply to HMRC for a stamp duty refund of £30,000.
How long does it take for HMRC to refund stamp duty?
15 working days is the normal timeframe; however, this can take longer if you do not provide all the information the HMRC require.
If it does take longer than 15 working days, you won't be paid any compensation for the delay; however, you can request to get paid the interest on the refund, and this is added onto it automatically when it is repaid.
Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.
He is the author of the property guide 'How to Buy a House Without Killing Anyone' and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.
Caragh Bailey is a Lead Property Content Specialist at SAM Conveyancing, having joined the firm in 2020. With a portfolio of over 150 technical conveyancing, house survey and mortgage guides, she has become a primary authority on the end-to-end sale and purchase process.
Caragh specialises in complex legal workflows, including Help to Buy redemptions, equity transfers, shared ownership structures, trust deeds for tax planning, and joint ownership disputes. Her expertise extends to leasehold reform and RICS home surveys, where she provides clear, factual guidance on independent legal advice for specialist mortgage products and intricate ownership structures.
