How do I reclaim the Stamp Duty surcharge if I sell my previous home?

Full answer

Many buyers who move home before selling their previous property end up paying the additional dwelling surcharge unnecessarily, not realising a refund is available once the sale of their old home completes. **Why the surcharge applies initially** If you buy a new main residence before selling your previous main residence, you technically own two properties at completion, triggering the 5% SDLT surcharge on top of standard rates (as of 2026/27), even though your intention is to sell the old property and only keep one home. **The 36-month window to sell and reclaim** If you sell your previous main home within 36 months of buying the new one, you can reclaim the surcharge portion of the SDLT you paid -- this recognises that your situation was always intended to be a straightforward move, just with the timing of the sale and purchase not aligning perfectly. **How to claim the refund** You (or your solicitor) apply for the refund via HMRC's online service or by post, and must do so within the later of 12 months from the sale of the previous home, or 12 months from the filing date of the SDLT return for the new purchase, whichever is later -- missing this window forfeits the refund. **What you need to provide** Your claim needs details of both transactions: the SDLT payment reference for the new property purchase, and confirmation of the sale of the previous main residence (completion date and details) -- your solicitor can often handle this reclaim process on your behalf, sometimes for an additional fee. **Worked example** Someone buys a new £400,000 home while still owning their previous main residence, paying the 5% surcharge on top of standard SDLT (adding £20,000 to their bill). They sell their old home 8 months later, well within the 36-month window, and reclaim the £20,000 surcharge from HMRC. **If you don't sell within 36 months** If your previous home has not sold within 36 months, the surcharge becomes a permanent cost and cannot be reclaimed -- this is a risk worth factoring into your cash flow planning if you are buying before selling, particularly in a slow property market where sales can take longer than expected. **Scotland and Wales equivalents** Scotland's Additional Dwelling Supplement (LBTT) and Wales's higher rates (LTT) have similar reclaim mechanisms if you sell your previous main residence within the relevant window (also generally 36 months), though the specific rates and administrative process differ from the England and Northern Ireland SDLT system. **Practical tip** Keep all paperwork from both the purchase (SDLT return and payment reference) and the eventual sale of your previous home together, and set a reminder well before the 12-month claim deadline after your old home sells, since this is an easy refund to miss if you are not tracking the deadlines actively.

Try the calculator