Reclaiming extra Stamp Duty Land Tax

In April 2016, HMRC introduced a higher rate of ‘Stamp Duty Land Tax’ (SDLT) for those buying a residential home and already owned one or more. This was bad news for buy-to-let investors who were the government’s intended target for the new tax.

The extra 3% paid in SDLT also affects buyers who acquire a new home before selling their old one. Say, for instance, they want to ‘do up’ the old house first before selling in order to get a better price. But, essentially, they own two homes until the old one is sold.

The extra 3% can be reclaimed but there are deadlines!!!

The deadline depends on when the sale of your old home took place.

  • Sale on or before 28 October 2018 – claim by the later of either, three months of the sale of the old property or twelve months of the filing date of the SDLT return for your new home (usually 30 days from completion)
  • Sales on or after 29 October 2018 – claim within 12 months of the later of either, the sale of your old home or the filing date of the SDLT return for the purchase of your new home.

It is easy to reclaim the extra SDLT (there are different procedures for Scotland and Wales). Apply online at https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties

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