In this brief guide, we are going to discuss getting a stamp duty refund, when you should apply for a stamp duty refund and what you can expect.

Can you get a stamp duty refund?

Yes, you can get a stamp duty refund if you have bought an additional property but you will need to meet either of the below requirements:

  • If you sell your previous residence within three years of buying your new main residence.
  • you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.

To claim the stamp duty refund you will need to be either:

  •  the main buyer of the property which was charged stamp duty at an additional rate or
  • An agent acting for the main buyer of the property.

HMRC also states “

Properties sold on or before 28 October 2018

If you sold your previous main residence on 28 October 2018 or earlier, HMRC must have your request within 3 months of the sale of that previous main residence, or within 12 months of the filing date of the return relating to the new residence, whichever is later.

Properties sold on or after 29 October 2018

If you sold your previous main residence on 29 October 2018 or later, HMRC must have your request within 12 months of the sale of that previous main residence, or within 12 months of the filing date of the return relating to the new residence, whichever is later.   “

Exceptional circumstances where you can still claim a stamp duty refund

There are some exceptional circumstances where you may still be able to claim a stamp duty refund if even you do not meet the requirements mentioned above.

If you bought your new home on or after 01/01/2017 and you were unable to sell your previous home within 3 years you may still be able to claim a stamp duty refund if you were unable to sell the home due to reasons outside of your control.

These reasons could be but are not limited to:

  • COVID19 and its impact on real estate transactions
  • Government advice preventing the sale

Once the reason which limited you from selling your property has ended, you ms sell your property in order to be eligible for the stamp duty refund.

You should then write to HRMC explaining why you were unable to sell your previous property within 3 years.

You should still provide all other required information and forms needed to claim the stamp duty refund. 

You should send the information to:

BT Stamp Duty Land Tax

HM Revenue and Customs

BX9 1HD

How to apply for a stamp duty refund?

You can either apply for a stamp duty refund online or via post.

To apply for a stamp duty refund online then please click here.

To use the online form you will need a Government Gateway ID and a password to your Government Gateway account. You can create one if you currently don’t have one.

You should note that you won’t be able to save a partially completed application when doing your stamp duty refund application online and you should instead have all your information to hand before starting the process.

To apply for a stamp duty refund via post then please click here.

Information you need when making your stamp duty refund online

  • Your personal details such as your full name, date of birth address etc
  • The main buyer’s details if you are not the main buyer
  • Details of the property which you bought and which a higher rate of stamp duty was charged.
  • The date you purchased the property which a higher rate of stamp duty was charged.
  • Your SDLT unique transaction reference number
  • Details of the previous main residence which you have now sold
  • The date of sale for the previous main residence, the address for the previous main residence and the details of the buyer
  • The amount of tax which was paid on the property which attracted the higher rate of stamp duty
  • The amount of tax you are asking for as a repayment
  • The bank details where you want the repayment to be sent.

HMRC also states that “If your repayment is going to an agent rather than the purchaser, you’ll need to attach a covering letter and signed purchaser authority. This should be in JPEG or PDF format, and a maximum of 5MB in size.

If you’re an agent asking on behalf of the main buyer you’ll also need a signed letter of consent from them.”

In this brief guide, we discussed getting a stamp duty refund, when you should apply for a stamp duty refund and what you can expect.

If you have any questions or comments please let us know.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.