£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.
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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