When Can I Claim a Stamp Duty Refund?

Stamp duty (SDLT) is probably the most significant cost you’ll face on top of the selling price when you buy a new home in England or Northern Ireland. Is there a way to claim back stamp duty? It’s a good question – yes, you may be able to reclaim some of the tax, but only if you meet specific criteria. 

If you live in Wimbledon, Wimbledon Village, Wimbledon Park and Coombe, you will almost certainly face a stamp duty bill when you buy a new house. According to Rightmove, the average property price in Wimbledon is over £860,000 – at these selling prices, even first-time buyers may struggle to avoid the fee. If you own multiple dwellings, you could end up paying a higher rate. But you may be able to reclaim some of your payment. 

We’ll show you how to determine if you qualify for a stamp duty refund and the process you must follow to make a claim. Read on to find out what to do, how long a stamp duty refund takes, must-know rules, and more. 

What Is Stamp Duty? 

Stamp Duty Land Tax (SLDT) is a tax charged in England and Northern Ireland when you purchase a property. The amount of Stamp Duty you pay is determined by the property’s value, if it’s your sole property, and if you’re a first-time buyer. 

The stamp duty rates you’ll have to pay go up in banded percentages as the selling price rises. 

The rates changed in April 2025, and the current stamp duty bands for main residences are: 

Property Value	SDLT Rate
Up to £125,000	0%
£125,001 to £250,000	2%
£250,001 to £925,000	5%
£925,001 to £1,500,000	10%
£1,500,001 or over	12%

First-time buyers are entitled to stamp duty tax relief and don’t have to pay any stamp duty if the property is priced at £500,000 or less. If the selling price is under £500,000, you will pay a 5% stamp duty rate on the portion £300,001 and £500,000. Unfortunately, you don’t qualify for any first-time buyer tax relief if the price is higher. 

Regardless of the rate, you can be fined if you don’t file a return and pay stamp duty within 14 days of completing your house sale. 

What Is The Multiple Property Stamp Duty Surcharge Rate? 

When buying another home means you own multiple properties, whether it’s a rental property, holiday home or additional residence, you must pay an extra 5% charge on top of the standard stamp duty rates outlined above. 

The additional property surcharge changed in October 2024, and the current stamp duty rates for second homes are: 

Property Value	SDLT Rate
Up to £125,000	5%
£125,001 to £250,000	7%
£250,001 to 925,000	10%
£925,001 to £1,500,000	15%
£1,500,001 or over	17%

Read our article on stamp duty for second homes for more detail about the SDLT charges you could face. 

If you buy your next home before you sell your previous home, you’ll usually have to pay a surcharge for additional properties. The stamp duty surcharge also applies to any properties purchased as a buy-to-let or purchased through a limited company. But in some cases, you might be able to claim an SDLT refund. We’ll explain who qualifies for money back from their bill and how to get it if you are eligible. 

Why Might I Be Eligible For A Stamp Duty Refund? 

If you buy a second home and sell your original residence within three years, you may qualify for a stamp duty refund. Most of the reasons apply to buyers who only own multiple dwellings for a limited time. 

To claim a refund of stamp duty on a second home, the first property must have been your main residence, and the additional home must be your new main residence. 

This kind of overlap happens for a multitude of reasons: 

• Your partner or spouse owns another residential property you’ve chosen to keep while buying a shared home. 
• You are in the middle of negotiating a divorce and own two properties while your situation settles. 
• The chain has collapsed, or you’re struggling to sell your home but don’t want to pass up the opportunity to buy a new house. 
• You bought the new residential property for holiday stays but have decided to make it your home and sell your original home. 
• You purchased a buy-to-let but have changed your plans and are now selling your home and moving to the new address. 

Remember, the refund only covers the additional home surcharge, not the stamp duty bill. 

There are other reasons why you might be able to get a stamp duty refund on residential properties, for instance: 

• You bought the property under shared ownership as a first-time buyer on or after 22nd November 2017. 
• The rules on properties with an annexe changed in 2018. If you were charged for multiple dwellings, you could claim a refund as they’re now viewed as one home. 
• If HMRC’s own online stamp duty calculator gave you an inaccurate figure, seek expert advice, as you may be able to recover the difference. 

The rules differ if you bought the house through a limited company, so seek expert advice tailored to your situation. 

Stamp Duty Refunds For An Uninhabitable Property  

If you’ve bought a property that is later found to be uninhabitable, you may be eligible for a stamp duty refund on the difference between the amount of stamp duty you paid with your original SDLT return, and the non-residential rate of SDLT.  

The rates of stamp duty land tax for non-residential properties are as follows: 

Property Value	SDLT Rate
Up to £150,000	0%
£150,001 to £250,000	2%
£250,001 or over	5%

Vacant properties can be considered derelict if they’re not suitable for use (NSFU) as a residence. For instance, if the property is at risk of walls and roof collapsing, or there’s extensive rot or asbestos throughout. You may need to produce surveys and builders’ quotes can help to reinforce your claim for an HMRC stamp duty refund.  

However, while a damaged roof, unsafe wiring or pest infestations may be signs of dilapidation, isolated issues may not automatically qualify you for a refund of stamp duty. As reported by Propertymark, HM Revenue and Customs distinguish between properties that are “unsuitable for use as a dwelling”, and just dilapidated or in need of renovation. In fact, over 95% of claim don’t meet the threshold, which can lead to penalties. If your property’s unsafe electrical wiring, flood damage or lack of kitchen can be fixed, then HMRC may reject your application.  

How Do I Get A Stamp Duty Refund? 

You need to claim your stamp duty refund within a year of the filing date on the newer property, or 12 months from the date when you sold your previous property. You can use whichever date is later but don’t miss the deadline, or your refund claim won’t be considered. 

To start off the stamp duty refund procedure, submit a paper form by post or complete the form on the government website. It’s possible to complete it yourself, but you can ask your solicitor to complete it if you prefer. The online form is available on the gov.uk, and you need to have this information available to complete your refund request: 

• Your own name and address, as the seller 
• The amount of tax you paid when you purchased the second property. 
• The purchase date and unique transaction reference number of the property purchase that incurred the stamp duty surcharge. 
• How much SDLT you paid in total when you bought the property. 
• The address of the property you have now sold. 
• The name of the buyer you sold your previous main residence to. 
• The date when you sold your previous property. 
• How much tax you are requesting is refunded. 
• The bank account number and the sort code of the account where you would like the payment to be sent. 

How Long Does It Take To Get A Stamp Duty Refund? 

The stamp duty refund is usually processed up to 15 days after you submit your online form to HMRC. 

Claiming Your Refund 

Be careful of companies contacting you and offering to claim the refund on your behalf on a no-win, no-fee basis. You can easily apply for stamp duty refunds yourself on the gov.uk website or by contacting HMRC. 

Find Out More 

If you want to buy property in Wimbledon, we can advise you on the many complex issues involved. Contact us to find out more about our selection of properties.