If you own one or more properties anywhere in the world, you will be liable for the additional higher rate unless you are replacing your main home.  A provision was made by H M Revenue and Customs to allow the reclaim of the additional payment if you do not dispose of your main home at the same time as you acquire the new property.  The application can be made by the main buyer or the Agent on behalf of the main buyer.

You can apply for the repayment of the additional rate because you have sold your main home if you are:

  • The main buyer of the home which attracted the higher rate of Stamp Duty Land Tax;
  • The Agent who acted for them in respect of the purchase; or
  • The main buyer and your previous main residence has been sold within three years of paying the higher Stamp Duty rates to qualify for the refund.

Your request must be received by H M Revenue and Customs within three months of the sale of your previous main residence or within twelve months of the filing of the return, whichever is later.

You can apply for the repayment using the online form (to do this you will have to set up a Government Gateway account – online form link) or alternatively fill in the form on-screen, print off and post to H M Revenue and Customs at the address below. (Online link postal form.)

The completed postal form should be sent to:

H M Revenue and Customs

BT- Stamp Duty Land Tax

BX9 1HD

United Kingdom.

To complete either of the forms you will require the following information:

  • Your details;
  • The main buyer’s details if they are different to your own;
  • Details of the property that attracted the higher rate of Stamp Duty Land Tax, including the date of purchase and the Stamp Duty Land Tax unique transaction reference number (if the return was submitted by an Agent they will supply this as it will be on the Stamp Duty Land Tax Certificate SDLT5 which is obtained when the application to pay the Stamp Duty Land Tax is made);
  • Details of the previous main residence you have sold, the date of sale, the property address and the name of the buyer;
  • The amount of tax you have paid on the property that attracted the higher rate of Stamp Duty Land Tax; and
  • The amount of tax that you are asking to be repaid.

The repayment can be sent directly to the person applying or can be sent to an Agent.  If it is to be sent to anyone other than the purchaser you will need to send a covering letter explaining this together with a signed purchaser authority that the purchaser is in agreement that the payment be made to a third party.

Once all information is received by H M Revenue and Customs the application will be processed. It is very difficult to give timescales as to how long the refunds are taking to be paid however, in excess of two months is not an unusual amount of time.

For further information contact Stacey Webb on 0191 261 0096 or by email at stacey.webb@markswattsmorse.co.uk.