Can I reclaim stamp duty on a second home if I sell my main home later?

Full answer

SDLT Surcharge Refund on Second Homes -- How It Works When you buy an additional residential property (including a new main home before your old one is sold), you must pay the higher rates of Stamp Duty Land Tax (SDLT). For 2026/27 this surcharge is 3 percentage points above each standard SDLT band on top of the normal rate. The three-year refund rule HMRC allows a refund of the surcharge if you sell your previous main residence within three years of completing the purchase of your new property. You must apply for the refund within: - Three years of completing the purchase of the new property, OR - 12 months of selling the previous main home -- whichever is later. In practice, if you sell your old home within the three-year window, you can reclaim the surcharge element. If exceptional circumstances (such as COVID delays or illness) prevented the sale, HMRC may consider extending the deadline on application. How to claim You apply for the refund online via the HMRC SDLT refund portal, or by writing to HMRC. You will need: - The UTRN (Unique Transaction Reference Number) from the original SDLT return - Completion date of the new purchase - Completion date of the sale of the old main home - The amount of surcharge paid Conditions that must be met - The property you sold must have been your main home (not a buy-to-let or holiday property) - The purchase must be of a new main residence -- not an investment property - The sale must be a genuine disposal; gifting or transferring at undervalue may not qualify First-time buyer relief and the surcharge First-time buyers are not normally in this situation, as the higher rates only apply if you already own a residential property. First-time buyer SDLT relief (nil rate up to GBP 300,000, 5% from GBP 300,001 to GBP 500,000) applies only where no previous residential property has been owned. Practical tip Always retain all SDLT documents and correspondence at completion. The refund can be substantial -- on a GBP 400,000 property the 3% surcharge equals GBP 12,000 -- so claiming on time is important. If you miss the deadline due to genuine exceptional circumstances, contact HMRC promptly with evidence.