Claiming a refund on second home stamp duty

Posted on: May 31st, 2018

Please note that Coffin Mew are unable to apply for a repayment of stamp duty on your behalf if Coffin Mew did not act in relation to your transaction.

To apply for a repayment, please visit the HMRC website

Stamp duty rates were increased for second homes with effect from 1st April 2016. Anyone purchasing an additional property, from this date onwards, must pay a higher rate of stamp duty if the new property does not replace their main residence.

But what if you then decide to sell your main residence? Are you then entitled to a refund?

The good news is that if you sell your main residence within 3 years of the date on which you complete your new purchase, you are entitled to make a claim for a refund. The refund would be the amount which you have paid above what you would have been charged, had the property not been an additional property.

For example, if you purchase an additional property for a price of £270,000, the stamp duty payable would be £11,600 instead of the previous lower rate of £3,500. If you then sell your main residence within a period of 3 years from the date of completion (the date you were able to collect the keys) you would be entitled to submit a claim for the difference of £8,100.

For the refund to be valid, a claim will need to submitted to HMRC within 3 months of the completion date of the sale or within 1 year of the date on which the stamp duty was filed on the purchase – whichever comes later. The form can be completed and submitted online or by post to HMRC. There will be certain information required in order for the claim to be submitted and this information can be provided by the conveyancers who acted for you at the time of the purchase, if required.

HMRC aim to process the repayment within 15 working days from the date they receive all the information which is requested in the form. If the claim is unsuccessful, HMRC will issue a letter explaining the reasons why.

To make a claim for a stamp duty refund, please visit the HMRC website.