£175 million in stamp duty has been handed back to those who overpaid following the introduction of the additional 3% stamp duty surcharge on second home purchases in April 2016.

Stamp Duty tax refunds for over 6,000 second homeowners

The stamp duty rise has been controversial to say the least, but its intended target is buy-to-let investors. However, some homeowners have been caught out by the tax hike, should they buy a new property before selling their old one.

Homeowners have had to overpay on stamp duty since the 3% rise was introduced in April last year, and then seek a refund from HMRC within three years of selling their former home.

The government has extended the length of time when homeowners can claim a refund from 18 months to 36 months, and this extension was announced in March 2016.

Figures from HMRC reveal that 6,800 refunds amounting to £80 million was paid out between 2016-17. £47 million was subsequently paid out in the second quarter of this year, totalling £175 million.

The government has introduced a series of measures in recent years with an aim to stunt the growth of the buy-to-let market and free up housing stock to help would-be first-time buyers get their feet onto the property ladder.

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Financial Reporter

About the author

Nicolas Holmes

Nick joined Robert Holmes to inject fresh ideas and help grow the New Homes department of Robert Holmes as well as helping to inject technology into the business and to grow its client base. Together with one of the Directors Nick is in charge of all Development opportunities that Robert Holmes deals with along with sales. Aged 40, he provides succession together with the two existing directors. Nick has always been focused on building client relationships and sales. He built up his own gallery in Chelsea, where he had a loyal following of customers and artists.

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