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Online refunds for Stamp Duty Land Tax

A new system is now in place for those applying for a SDLT refund on an additional property where the property sold was a main residence.

Higher rates of SDLT were introduced on 1 April 2016 on purchases on additional residential properties, with the main target being the buy-to-let market and second homes. There will be some circumstances where purchasers will still have to pay the higher rates, even though the property is not a second home.

  • where a new main residence is purchased before disposing of a previous main residence the higher rate will be payable. They then have 36 months to sell their previous main residence and claim a refund.
  • purchasers will also have 36 months between selling a main residence and replacing it with another main residence without having to pay the higher rates
  • a small share in a property which has been inherited within the 36 months prior to a transaction will not be considered as an additional property when applying the higher rates.

The rate is 3% higher and will apply where at the end of the purchase transaction, an individual owns two or more properties.

Reference: GOV.UK SDLT repayment of Higher Rate