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 based on 3% rate
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.
Based on the stamp duty rates on completion (February 2023), they pay stamp duty land tax of £35,500 (based on £17,500 of normal stamp duty land tax and £18,000 of higher rate stamp duty - 3% of £600,000 is £18,000).
Jane and Michael sell their previous main residence 4 months later and then apply to HMRC for a stamp duty refund of £18,000.
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 started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
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