How To Reclaim Stamp Duty

Stamp Duty Land Tax (SDLT) also known as Stamp Duty is charged when you purchase houses, flats and other land and buildings over a certain price in the UK.

How To Reclaim Stamp Duty?

If you have sold what was previously your main home and you were either the main buyer of the property charged at the higher SDLT rate or acting as an agent for the main buyer, you may be eligible for a repayment of the higher rates of SDLT for additional properties. Here’s what you need to know about the process:

Qualification

You must have sold your previous main residence within 3 years of buying the new property to qualify for a refund, unless exceptional circumstances apply. If you purchased your new home on or after 1 January 2017 and were unable to sell your previous home within 3 years due to reasons beyond your control, you may qualify for a refund.

Exceptional Circumstances

Examples of exceptional circumstances include delays in selling due to the impact of coronavirus (Covid-19) or action taken by a public authority preventing the sale. Once the exceptional circumstances end, you must sell the previous home to be eligible for the refund.

Application Process

To apply for the refund, write to HMRC and provide the necessary information, including an explanation of why you couldn’t sell your previous main home within 3 years.

Include your details, details of the main buyer (if different), information about the property that attracted the higher rates of SDLT, and details of the previous main residence you’ve sold.

Specify the amount of tax paid on the property that attracted the higher rates and the amount of tax you’re requesting for a repayment. Provide bank account and sort code details for electronic payment of the refund if possible.

Written in August 2023 by:

Sam Chester

Additional Requirements for Agents

If the repayment is going to an agent rather than the purchaser, attach a covering letter and a signed purchaser authority. If you’re an agent requesting on behalf of the main buyer, include a signed letter of consent from them.

Time Limit for Applications

For properties sold on or before 28 October 2018, HMRC must receive your request within 3 months of the sale of the previous main residence or within 12 months of the filing date of the return relating to the new residence, whichever is later.

For properties sold on or after 29 October 2018, HMRC must receive your request within 12 months of the sale of the previous main residence or within 12 months of the filing date of the return relating to the new residence, whichever is later.

You should send the information to:

BT Stamp Duty Land Tax

HM Revenue and Customs

BX9 1HD

By following these guidelines and providing the necessary documentation, you can apply for a repayment of higher rates of SDLT for additional properties if you qualify under the specified conditions.

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Attention Please!!!

The content within this article is as accurate as the date it was written. To ensure the most up to date information, you should consult with one of the experts that we work with as every lender and their polices are different and can be changed or amended without notice.

This website is for information only and does not constitute financial advice. Our mortgage advisers are all fully qualified to provide mortgage advice in accordance with the Financial Conduct Authority (FCA) regulations. We only exclusively operate with businesses that are authorised and regulated by the FCA. All advice offered will be unique to your individual circumstances.

Some Buy to Let mortgages are not regulated by the FCA. You should carefully consider securing other debts against your home. If you do not keep up your mortgage repayments, your home may be repossessed. Equity released from your home will also be secured against it.