31 Mar 2018
Author: Stephen Breen
If you’ve paid the higher Stamp Duty Land Tax (SDLT) rates because you moved home without first selling your old home, you may be able to claim a repayment.
Who can claim?
You can reclaim the additional SDLT if you’re the main buyer of the property on which the higher rates were paid, or you’re the agent acting for the main buyer.
To be able to claim, you must have sold your old home within three years of paying the higher rates on your new home.
You’ll need to submit your claim within three months of selling your old home, or within 12 months of the filing date of the SDLT return: whichever is later.
How to claim
To make your claim, you can either use the online form (you’ll need to set up a Government Gateway account or sign into your existing account), or you can fill in the form on-screen, print it off and post it to HM Revenue and Customs. There’s no way to save the form so if you complete it online, make sure you have all your information to hand.
Click here to access the online or print versions of the form:
You’ll need to have the following information to hand:
- your details
- if different, the details of the main buyer for the property on which you paid a higher rate of SDLT
- details of your main residence (i.e. the property on which you paid a higher rate of SDLT), including the date of purchase and SDLT transaction reference number
- the amount of tax you paid on your main residence (i.e. the property on which you paid a higher rate of SDLT)
- details of your old home that has now sold, including the date of sale, the address of the property and the name of the buyer
- the amount of tax you want to be repaid
Agents claiming on behalf of the main buyer will also need a signed letter of consent.
Chris and Jenna live in a 3 bedroom house in Birmingham. Jenna has agreed with her employer to relocate to Leeds and they put their home on the market for £170,000. Chris and Jenna find a property in Leeds priced at £200,000 but have not yet sold their current home. Jenna’s employer is anxious for her to move and they purchase the new property, before the old property has sold. Their SDLT on the new property is calculated at 3% above the normal rate, because the new property is treated as a second home:
- Up to £125,000: 3% (£3,750)
- Above £125,000 and up to £250,000: 5% (£3,750)
- Total SDLT due: £7,500
18 months after their move to Leeds, their Birmingham property sells for the asking price. They can now claim a refund on the difference between what they paid, and what they would have paid if they had sold their main residence before purchasing the replacement. Their SDLT calculation should have been:
- Up to £125,000: 0% (£0)
- Above £125,000 and up to £250,000: 2% (£1,500)
- Total SDLT due: £1,500
They can therefore claim a refund of £6,000.
Make A Free Enquiry
PLEASE NOTE WE ARE UNABLE TO HELP YOU RECLAIM A REFUND UNLESS WE ACTED FOR YOU IN THE PURCHASE OF THE PROPERTY.