Property owners who have paid the higher rate of Stamp Duty Land Tax (SDLT) on additional properties can apply for a refund when they sell their previous main home. This refund applies to the primary buyer or accountants acting on their behalf. To qualify, the previous primary residence must be sold within three years of purchasing the new property unless exceptional circumstances are applicable.
For sales completed on or after 29 October 2018, HMRC must receive the refund request by the later of the following two dates: 12 months after the sale of the previous home or 12 months after the SDLT return filing date for the new property.
Even if the previous home took over three years to sell, a refund is still possible under certain conditions. This applies if the new home was purchased on or after 1 January 2017 and the sale was delayed due to exceptional circumstances. However, typical property sales issues, such as difficulty finding a buyer or delays in negotiations, are not considered exceptional.
Once the reason for the delay ends, the previous home must be sold without further delay to qualify for a refund. To claim, submit a request to HMRC with proof of eligibility, the SDLT unique transaction reference number, and details of both the new and previous homes.
Claims can be made online through the Government Gateway portal or via form SDLT16, which must be completed online. Accountants or tax agents must have written consent from their clients to submit the claim.
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