The refund process for higher rate stamp duty clarified by HMRC

HMRC has introduced new guidance aimed at helping landlords, property owners, and their accountants manage the process of obtaining a refund for higher Stamp Duty Land Tax (SDLT) when selling additional properties.  

This is particularly relevant for those who have paid the higher SDLT rate on a recent home purchase and are now selling their previous primary residence. 

Eligibility for refunds 

In line with the most recent guidelines, you are eligible to reclaim the higher SDLT if you sell your former primary residence within three years of purchasing a new one. 

This refund is available to both property owners and their accountants managing SDLT matters. 

However, HMRC understands that exceptional circumstances may occasionally cause delays in the sale.  

So, for those of you who do encounter delays, you will still be able to claim the refund as long as you sell the old home as soon as the issues are resolved. 

Important deadlines to be aware of 

For those who sold their previous home on or after 29 October 2018, please note the following: 

• Refund claim deadline – Submit your refund claim to HMRC within 12 months following: 
  • The date of the sale of your previous home, or 
  • The date the SDLT return for your new property was filed. 
• Exceptional delays – If there were exceptional delays in selling the previous home, you can still apply for a refund if: 
  • The new home was purchased after 1 January 2017. 

Keep in mind that standard delays, such as difficulties in finding a buyer, issues within the sale chain, or delays in mortgage approval, do not qualify as exceptional circumstances. 

How to apply 

To request your refund, you’ll need to share some details with HMRC: 

• Information about the property where the higher SDLT was paid (including the purchase date and SDLT unique transaction reference number). 
• Details about your sold previous home (such as the sale date, address, and buyer’s name). 

You can find the SDLT unique reference number on the SDLT5 certificate issued by HMRC.  

Your claim can be made online through the Government Gateway portal or by completing form SDLT16 electronically.  

These updated guidelines are here to help you manage the refund process smoothly and keep on top of deadlines.  

If you have any questions or need assistance, don’t hesitate to reach out for support.