Repayment of Higher Rate (SDLT)

05.06.2020

Updated: 2024-01-12 07:46:54

Introduction

The Approach to this and all Articles is consistent with our Standard System and Procedure.
This article gives an overview into Repayment of Higher Rate of Stamp Duty Land Tax (SDLT).

Those who have had to pay higher Rate SDLT.
You must have paid the higher SDLT rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:
- It will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world
- You have not sold or given away your previous main home
- No one else has a lease on it which has more than 21 years left to run

If you sell or give away your previous main home within 3 years of buying your new home, you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill.

This is where previous home has been sold after 3 years.
You may still be able to apply for a refund, if you purchased your new home on or after 1 January 2017 and were unable to sell your previous home within 3 years.
To be able to get the refund, the delay in selling must be because of reasons outside of your control.
These may be, but are not limited to:
- the impact of coronavirus (COVID-19) preventing the sale
- an action taken by a public authority preventing the sale
Once the reason has ended, you must sell the previous home to be able to apply for the refund.

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.
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.