How to claim back stamp duty – find out if you’re owed a refund worth thousands

It may be possible to apply for a refund of the surcharge beyond the three-year rule in cases where you purchased your new home on or after 1 January 2017 and were unable to sell your previous home within three years after this – but only if reasons were outside of your control owing, for example, to the coronavirus pandemic, or the public authority taking action to prevent the sale going through. 

Once the home has been sold, you can apply for the refund by writing to HMRC to explain what happened, and you’ll need to provide the usual information needed for a stamp duty refund. The tax authority will then assess whether you’re eligible to receive money back.

How do I apply for a stamp duty refund?

To claim a refund, you can do this yourself for free directly with HM Revenue and Customs (HMRC) by completing a stamp duty land tax return. 

This can be done online via the Government website, using a Government Gateway user ID and password. You can create these when you use the service.

If you prefer, you can also print off the form and post it to HMRC. 

Be aware that the information needed is fairly extensive, so it’s worth getting it all together before you start the process. 

This includes details of the property you paid the higher rate of stamp duty for (including date of purchase and stamp duty transaction reference number), and also details of the home you’ve sold (including date of sale, address of the property and the buyer’s name). 

In addition, you’ll need to provide details of the amount you’re asking for as a refund, as well as the details of the bank where you want to receive this payment. 

Ms Lang said: “Often it makes sense to ask the solicitor doing your conveyancing to handle this part of the stamp duty administration as well, though this may depend on the fee charged.”

There are also a number of third party firms that offer to make stamp duty refund claims for you – fees can be high, so make sure you understand the charges before going down this route.

How long do I have to claim a stamp duty refund?

You must send your request to HMRC within a year of the sale of your previous main residence, or within 12 months of the filing date of the return relating to the new residence, whichever is later.

When will I receive my refund?

Technically, you should receive your refund in around 15 days if you have provided all the required documentation. 

In reality however, it may take a little longer, according to the experts.

Mr Cristofi said: “HMRC is notorious for delays when returning money owed, and while it could take up to six months, a realistic gauge is around two months.”