If you have bought a house since 1 April 2016 you may have paid a stamp duty land tax (SDLT) supplement of 3% on the entire value. Generally, the supplement is not payable where your main home is replaced, even if you end up owning more than one residential property.
However, where the new main home is purchased before the former is sold, the supplement is initially payable. As long as the sale of the old main home is completed within three years of the purchase, the supplement can be reclaimed. Could you be eligible to claim a refund of SDLT?
The repayment can be claimed either online or by post using form SDLT16. You will need the SDLT purchase reference.
The claim must be made by the later of:
- three months from the completion of the sale, and
- twelve months from the SDLT return filing date (which is 30 days from the completion of the purchase).
If these deadlines are missed, the opportunity to reclaim the SDLT supplement will be lost.
Slightly different rules apply in Scotland where land and buildings transaction tax is levied in place of SDLT. From 1 April 2018 Wales will have its own version of SDLT, with different rates and thresholds, so if you are looking to buy a property in Wales it may be best to complete before next April.