Last updated: 14 October 2026
Are you eligible for a stamp duty land tax refund?
You may be able to claim back the higher rates of stamp duty land tax (SDLT), the 5% surcharge on additional residential properties, if you paid them because you hadn’t yet sold your previous main home, and you then sell it within 3 years of buying the new one. You must claim within 12 months of selling the old home, or within 12 months of the new purchase’s SDLT return deadline, whichever is later. Other refunds may be possible if SDLT was overpaid because of an error, such as the wrong rate on mixed-use property.
Refund of the higher rates
| Condition | Detail |
| You bought a new main home | And paid the higher rates because you still owned your old main home |
| You sold your previous main home | Within 3 years of buying the new one |
| The old home was your main residence | At some point in the 3 years before you bought the new one |
| You claim in time | Within 12 months of the sale, or 12 months of the filing date of the new return, if later |
You can claim online through HMRC’s form, by post, or by amending the SDLT return within 12 months of the filing date.
Example
Nadia buys a new home for £500,000 in March 2026 before selling her old flat. She pays the 5% surcharge of £25,000 on top of standard SDLT. She sells her flat in January 2027. She claims the £25,000 refund from HMRC within 12 months of the sale.
Other reasons SDLT might be overpaid
- Mixed-use property: a home with a commercial element, such as a shop or genuine farmland, may qualify for lower non-residential rates
- First-time buyer relief not claimed when you were eligible
- Multiple dwellings: before 1 June 2024, multiple dwellings relief could reduce SDLT; it has now been abolished
- Uninhabitable property: a property that couldn’t be lived in at completion may be non-residential
Beware of firms offering no-win, no-fee SDLT refund claims on weak grounds. HMRC has rejected many claims arguing that gardens or annexes make a property mixed-use. If a claim is wrong, you will owe the tax back, plus interest and possibly penalties.
Time limits for amendments
You can amend an SDLT return within 12 months of the filing date. After that, an overpayment relief claim can be made within 4 years of the effective date of the transaction.
Current SDLT rates for main homes (from 1 April 2025)
| Portion of price | Rate |
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Over £1.5 million | 12% |
What to send with a claim
Include the SDLT return reference for the new home, the completion dates of both properties and the bank details for the refund.
Frequently asked questions
Does the refund apply in Wales or Scotland?
No. They have Land Transaction Tax and LBTT, with their own rules.
Is interest paid on refunds?
Yes, HMRC pays repayment interest.
What if I sell the old home after 3 years?
You can’t claim the refund.
Can my solicitor claim for me?
Yes, with your authority.
Related: stamp duty on inherited property and buying a sibling’s share.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with stamp duty refunds. See our property tax accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
