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).
Who does it apply to?
- 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
When to apply for a refund?
- 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.
Exceptional circumstances?
- 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.
What are the time limits to apply for 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.
Who can apply for repayment?
- Main buyer of the property which was charged at the higher SDLT rate
- Agent acting for them