How to Claim Stamp Duty Land Tax Refund 2025-26?
- MAZ
- Sep 25, 2023
- 14 min read
Updated: Aug 29
Is a Stamp Duty Refund on the Table? Know Your Triggers and Timelines
Why Refunds Matter in 2025–26
Picture this: you’ve just spent thousands on your dream home in Manchester, only to hear a friend whisper, “You might get some of that stamp duty back.” Confused? You’re not alone. Each year, thousands of UK buyers discover they’ve overpaid Stamp Duty Land Tax (SDLT) and are entitled to refunds—yet many miss out simply because the rules are buried in technical HMRC guidance.
For the 2025/26 tax year, the stakes are higher than ever. The nil-rate threshold, which had been temporarily increased during the pandemic years, reverted in April 2025 to £125,000, meaning more properties now attract SDLT. On top of that, the 3% surcharge for additional properties rose to 5% for completions after 1 April 2025. That one change alone has triggered a wave of potential refund claims from buyers caught in the rush to complete before the deadline.
According to HMRC data, SDLT overpayment claims run into the hundreds of millions each year. But knowing if you qualify, how to apply, and which deadline applies is where most taxpayers stumble.
The Main Reasons Refunds Arise
Over the past 18 years advising clients—from first-time buyers in Birmingham to seasoned landlords in London—I’ve seen the same refund scenarios crop up time and again. The most common are:
Sale of a Previous Main Residence
○ If you paid the 5% higher rate (formerly 3%) because you owned more than one property at purchase, you may claim a refund once your old main home is sold.
○ Deadline: Apply within 12 months of selling the old home, or within 12 months of the SDLT filing date, whichever is later (gov.uk guidance).
Multiple Dwellings Relief (MDR) Missed
○ Buying more than one dwelling (for instance, a house with a self-contained annex) can qualify for MDR, which lowers SDLT.
○ Many conveyancers overlook it; I’ve had clients reclaim tens of thousands after re-examining transactions.
Mixed-Use or Non-Residential Property
○ Properties with both residential and commercial elements (e.g. a shop with a flat above) should often be taxed at lower non-residential rates.
○ Misclassification is common and refund-worthy.
Return Errors and Overpayment Relief
○ SDLT returns must be corrected within 12 months. If an error emerges later, Overpayment Relief allows a claim up to 4 years after the filing date—but only in narrow circumstances.
The 2025/26 SDLT Rates at a Glance
It helps to see the numbers in black and white. Below is the residential SDLT rate table for England and Northern Ireland from April 2025:
Property Price Band | Standard Rate | With 5% Surcharge (Additional Properties) |
Up to £125,000 | 0% | 5% |
£125,001–£250,000 | 2% | 7% |
£250,001–£925,000 | 5% | 10% |
£925,001–£1.5m | 10% | 15% |
Above £1.5m | 12% | 17% |
Note: Scotland and Wales have their own regimes (LBTT and LTT), which we’ll explore later.
Case Study: Selling the Old Flat Too Late
Let’s take Sarah from Bristol, who bought a new family house in February 2025 before selling her old flat. Because she briefly owned two homes, she paid the extra 3% surcharge. Stress meant she didn’t sell the flat until June 2026—well within the three-year window.
Sarah nearly missed the refund deadline, as she assumed she had three years to claim. In reality, she had to apply within 12 months of the sale completion. Luckily, with professional help, she filed an SDLT16 form in time and reclaimed over £14,000.
Moral? Don’t assume deadlines are generous; check them immediately after selling.
Refund Pathways and Deadlines Compared
Here’s a quick comparison of the main claim routes:
Refund Type | Typical Trigger | Deadline | How to Claim |
Higher-Rate Surcharge Refund | Sold old main home within 3 years | 12 months from sale or SDLT filing date (later of) | Form SDLT16 via gov.uk |
Multiple Dwellings Relief (MDR) | Two or more dwellings, annexes | Amend return within 12 months | Amend return or apply for overpayment relief (within 4 years) |
Mixed-Use Misclassification | Property part residential, part commercial | 12 months to amend; 4 years for overpayment relief | Amend return or overpayment relief claim |
Overpayment Relief | Calculation error, wrong rate applied | 4 years from filing date | Overpayment relief claim with HMRC |
Common Pitfalls I’ve Seen
Be careful here, because I’ve seen clients trip up when:
● They assume their solicitor will chase refunds – in reality, most conveyancers’ work ends at completion.
● They confuse the 3-year disposal rule with the 12-month claim deadline – you might sell within 3 years, but still miss the chance to reclaim.
● They fall for “fixer-upper” refund companies – HMRC and the courts have shut down claims arguing a property was “uninhabitable” simply because it needed work. Those are dead in the water after a 2025 Court of Appeal ruling.
SDLT Refund Calculator
Building Your Claim: Documents, Deadlines and Real-World Pitfalls
Where to Start with Your Refund Claim
None of us loves paperwork, but the good news is that HMRC has a clear pathway for SDLT refunds—you just need to know where to look. Whether it’s reclaiming a higher-rate surcharge or correcting a return, the first port of call is your personal tax account or
HMRC’s SDLT refund guidance page.
● Check HMRC’s official instructions on claiming back the higher-rate surcharge here: Apply for a refund of the higher rates of SDLT.
● General guidance on SDLT, including how to amend returns: Stamp Duty Land Tax: Overview.
Step-by-Step: How to Build a Solid Claim
So, the big question on your mind might be: what do I actually need to do to get my refund? Here’s the process I’ve guided countless clients through, broken into practical steps.
1. Confirm You’re Eligible
Before you start forms, check eligibility against HMRC’s criteria:
● Did you sell your old main residence within 3 years?
● Was an additional property surcharge applied in error?
● Was your transaction misclassified (e.g. mixed-use)?
See: When you may be able to get a refund.
2. Gather Your Documents
HMRC won’t process a claim without the right evidence. Have these at hand:
● SDLT return (submitted at purchase).
● Completion statement from your solicitor.
● Proof of sale for the previous main home (completion statement, Land Registry record).
● Bank details for the refund payment.
If you’re amending a return, keep your UTRN (Unique Transaction Reference Number) safe—it links HMRC’s system to your specific transaction. Guidance: Amend an SDLT return.
3. File the Claim Correctly
● Surcharge refund (old home sold): Submit online via form SDLT16 (link here).
● Amending within 12 months: Use the HMRC online system or post a paper amendment (how to amend).
● Overpayment relief (up to 4 years): Apply in writing to HMRC—this is explained under Overpayment relief.
4. Track the Outcome
HMRC aims to process most SDLT refunds within 15 working days, but in my experience it can stretch longer if documents are missing or details don’t match. Always double-check bank details to avoid unnecessary back-and-forth.
Documents You Must Keep Safe
Be careful here. I’ve seen clients delay claims simply because they couldn’t find a solicitor’s completion statement months after the transaction. Create a folder (paper or digital) with:
● SDLT return confirmation (from your solicitor or yourself if you filed directly).
● Contracts for purchase and sale.
● HMRC correspondence.
● Evidence of completion dates for both transactions.
If HMRC queries your claim, you’ll need to provide these promptly.
Case Study: Missed MDR, Saved by Good Records
Take David from Leeds, a landlord who bought a main house plus a self-contained annex in late 2024. His conveyancer missed that this qualified for Multiple Dwellings Relief (MDR). By carefully keeping all contracts and plans, David was able to submit an amended return within the 12-month window. He reclaimed over £9,000—money that could easily have been lost if he’d relied on memory alone.
See the official MDR guidance for background: Stamp Duty Land Tax: Reliefs.
Don’t Fall Into These Traps
Over the years, I’ve seen many well-meaning taxpayers trip up because of misconceptions or poor advice. Here are the ones to watch:
● Thinking three years applies to everything – Remember: you have three years to sell your old home, but only 12 months from sale to claim (gov.uk reminder).
● Assuming a solicitor handles claims automatically – They usually don’t. It’s up to you or your accountant to file.
● Falling for “uninhabitable” refund companies – HMRC warns against spurious claims that a property wasn’t liveable. Courts have ruled against these schemes, and you could end up with penalties if you try. See Check property details with HM Land Registry to confirm the classification instead of relying on “fixer-upper” pitches.
● Missing the 12-month amendment deadline – After that, you’re into the more complex overpayment relief process, which requires tighter proof (Overpayment relief guidance).
Quick Checklist Before You Hit ‘Submit’
Here’s a practical tick-list I give to clients:
● Did you confirm eligibility against HMRC’s rules?
● Do you have SDLT return, contracts, and completion statements ready?
● Have you checked the 12-month or 4-year deadlines?
● Did you identify the correct route: SDLT16, amended return, or overpayment relief?
● Are bank details and UTRN correct?
● Have you saved a copy of the claim submission for your records?
Advanced Refund Scenarios for Business Owners and Complex Cases
When Refunds Involve More Than Just a Family Home
Now, let’s think about those of you running businesses, juggling side incomes, or investing in property portfolios. SDLT refund claims can become far more tangled here than with a straightforward “sold-the-old-home” scenario. Over the years, I’ve seen directors, contractors, and landlords lose out simply because their transactions straddled both personal and business interests.
Mixed-Use Property and Business Buyers
Take a classic example: a shop with a flat above. If your solicitor incorrectly filed the entire purchase under residential SDLT (plus the 5% surcharge), you’ve likely overpaid.
HMRC’s own definition makes the difference clear: mixed-use transactions should be taxed at non-residential rates (SDLT: non-residential rates). That alone can slice thousands off the bill. If you spot such a misclassification later, your route is either an amended return within 12 months or an overpayment relief claim within four years (Claiming relief for overpayment).
Contractors, IR35, and Unexpected SDLT Refunds
Here’s one that surprises many contractors caught by IR35. Suppose you set up a personal service company and bought a property partly for business use—say, an office annex. If SDLT was charged at residential rates only, HMRC may later accept a mixed-use argument, qualifying for a refund.
The catch? Claims like these often need robust evidence—floor plans, usage records, lease terms. Without those, HMRC will simply reject your refund.
Buy-to-Let Investors and MDR Oversights
For landlords, Multiple Dwellings Relief (MDR) is a frequent battleground. Buying two flats in a single transaction, or a house with multiple self-contained units, can dramatically lower SDLT liability. Yet it’s still missed in many conveyancing files.
If spotted within 12 months, amend your return (How to amend SDLT return). After that, you may still argue for overpayment relief if the facts support it. But the longer the delay, the harder the battle.
Scotland and Wales – Different Taxes, Different Rules
One pitfall I’ve seen often is confusion across borders. SDLT only applies in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT). Refund rules and claim processes differ:
● LBTT refunds are handled by Revenue Scotland (LBTT guidance).
● LTT refunds are handled by the Welsh Revenue Authority (LTT guidance).
If you’ve bought in Scotland or Wales, don’t waste time filing an SDLT refund with HMRC—you’ll need to use the devolved authority’s system.
The “Overpayment Relief vs. Amendment” Dilemma
A crucial technicality: whether you use the 12-month amendment window or the 4-year overpayment relief route.
● Amendment is faster, simpler, and more likely to succeed.
● Overpayment relief requires you to prove why the original calculation was wrong and that you couldn’t have corrected it sooner (Overpayment relief rules).
I once worked with a client in London who only realised three years later that his “granny annex” purchase should have qualified for MDR. We pursued overpayment relief and won—but the evidence file we compiled ran to over 150 pages. It’s a reminder: the longer you wait, the higher the bar.
Staying Alert to Policy Shifts
As of August 2025, the government is actively debating reforming property taxes, with suggestions that SDLT could be replaced by an annual property levy. While no change is confirmed yet, it’s a signpost that buyers should not delay legitimate claims—the refund framework may evolve in the years ahead.
Case Study: Alan’s Business Annex
Alan, a self-employed graphic designer in Leeds, bought a semi-detached property with a separate annex he fitted out as an office. His solicitor filed the entire purchase as residential with a 5% surcharge. On review, we split the transaction: the annex was legitimately used for business, qualifying the deal as mixed-use. By filing for an amendment, Alan reclaimed just over £11,000 in SDLT.
The key here? Usage evidence. Alan had invoices, client meetings logged, and separate utility bills for the annex. Without this, HMRC would likely have declined the claim.
Summary of Key Points
Refund triggers vary – Main ones are surcharge refunds, MDR oversights, and mixed-use misclassifications.
Deadlines are tight – 12 months for amendments or surcharge refunds; 4 years for overpayment relief.
Documents matter – Keep SDLT returns, contracts, completion statements, and UTRNs in one place.
Business use can change tax treatment – Annexes, shops with flats, and similar cases may qualify for non-residential rates.
Don’t assume your solicitor checks refunds – It’s almost always your responsibility to apply.
HMRC prefers amendments to overpayment claims – The latter need more proof and are scrutinised heavily.
Avoid “uninhabitable” refund schemes – Courts have ruled against them, and HMRC may impose penalties.
Scotland and Wales run separate systems – Use Revenue Scotland or the Welsh Revenue Authority, not HMRC.
Refund amounts are larger post-April 2025 – The surcharge rose to 5%, so refunds can be worth thousands more.
Policy reforms may reshape refunds – Don’t delay claims; the system could change in coming years.
FAQs
Q1: Can someone adjust their SDLT return if they sold part of the property later?
A1: Well, it’s worth noting that if you’ve sold or subdivided part of a property after completion—for instance, turning a self-contained annex into a rental flat—you can’t adjust the original sale return. SDLT applies at the time of purchase, so reliefs like MDR must be claimed upfront or amended within the usual deadline, not retroactively.
Q2: Can someone claim a refund if they inadvertently paid additional SDLT by being briefly non-UK resident?
A2: In my experience, the key is UK-residence status at completion. If you wrongly paid a non-resident surcharge and soon after became a UK tax resident, you can claim a correction—but only if the error is flagged within the amendment or overpayment window. Keep proof of return—like utility bills or council tax—as support.
Q3: What if someone changed jobs during the purchase—does it affect their SDLT surcharge refund?
A3: It’s a common mix-up, but unless your change in employment alters your residence status or property use, it has no bearing on the surcharge rules. SDLT is detached from employment status—it’s all about property ownership and use.
Q4: How does someone working remotely from abroad affect SDLT (e.g., self-employed digital nomad)?
A4: For remote workers buying a UK property while living abroad, SDLT rates still apply as normal. The only wrinkle is that you must show UK residence “for tax purposes” at completion to avoid non-resident surcharges. Keep records like non-UK bank statements and working arrangements to validate your residency status if needed later.
Q5: Can someone claim a refund if housebuilder mismeasured the annex, affecting MDR eligibility?
A5: If square footage was misrepresented and the annex value changes the MDR calculation, you can amend the return—provided that happens within 12 months of filing. I’ve turned around such cases where just a corrected floorplan sparked a refund of several thousand.
Q6: Can someone on a director’s loan use business expense evidence to support an SDLT mixed-use claim?
A6: In my practice, I’ve seen clients do this. If you converted part of a house into an office using business funds, that strengthens a mixed-use case if it’s clearly demarcated and formally recognised—say, through separate electricity meter or lease. HMRC takes that seriously if it’s filed properly.
Q7: Can someone claim SDLT relief when purchasing via a limited company holding multiple dwellings?
A7: If your company buys multiple dwellings in one go, MDR may apply—even for corporate purchasers. It’s essential, though, that each portion is legitimately separable. I’ve guided property developers through this—amendments within the 12-month window saved tens of thousands.
Q8: What if someone remortgaged before acquiring another property—does it count towards multiple-dwelling rules?
A8: Mortgage timing doesn’t influence SDLT relief. The critical bit is ownership at completion. If you still owned the first home when buying the second, the surcharge applies. Selling the first within the required period can allow refund.
Q9: How should someone handle SDLT when inheriting a property before buying another?
A9: Inheritance doesn’t trigger SDLT, but if you then purchase a property and still “own” the inherited one, the surcharge might apply. You’d need to sell the inherited property within 3 years and then claim refund. Keep probate documents and sale details handy to support the refund claim.
Q10: If a taxpayer paid SDLT on a joint purchase but only one party qualifies for MDR, can one still claim?
A10: Yes—each buyer’s circumstances are considered individually. If one co-owner qualifies for MDR (for example, owns multiple dwellings separately), they can claim their share of relief. Make sure HMRC can see the contribution breakdown, usually via completion statements.
Q11: What unique challenge does a freelancer in Leeds face when claiming SDLT refunds?
A11: Freelancers often combine home and office. If you use a room exclusively for business and haven’t declared it, you lose mixed-use opportunity. Splitting costs (e.g., utility bills) and showing separate business insurance can help amend fuel claims. I’ve seen freelancers recover thousands by demonstrating a working-from-home zone.
Q12: Can someone receiving rental income post-completion still claim MDR retrospectively?
A12: Sadly, no. Rental income begins after completion; SDLT is based on use at completion date. If the property was residential at that time, MDR must be claimed properly then—not after converting to rental.
Q13: Is there a workaround if someone missed the 12-month amendment deadline due to illness?
A13: There is no formal extension for personal hardship. That said, I once helped a client provide a letter from their GP and solicitor demonstrating serious illness—that bolstered a case via overpayment relief. It worked, though it’s discretionary. It underscores the need for early action whenever possible.
Q14: Can someone co-owning abroad trigger a refund due to non-resident surcharge misclassification?
A14: Yes. If one owner is non-UK resident but you all live in the UK, that non-resident surcharge may have been wrongly applied. You can amend or claim overpayment relief—especially if the non-resident owner spent significant time in the UK around completion. Travel records help prove your case.
Q15: If someone bought property as part of a group of companies, can they reclaim group relief separately?
A15: Group relief claims must go through the group’s designated agent. But if an individual purchaser within the group qualifies for MDR or surcharges, they can still lodge parallel claims—just ensure they don’t conflict and both get tracked separately.
Q16: How might someone with multiple jobs accidentally trigger a surcharge they can reclaim?
A16: It’s surprising, but some people with multiple employments abroad get taxed for non-resident status when buying. If you’re taxed as non-resident but actually live and work fully in the UK, you may wrongly incur surcharge. It’s worth checking your residency stamp on the SDLT record and amending if needed.
Q17: Can someone using a trust to transfer property later claim refunds?
A17: Transferring property from an individual to a trust isn’t a purchase for SDLT—and so may be exempt. But if SDLT was incorrectly applied during a legal structure reorganisation, you can amend your return. I’ve helped clients reclaim SDLT in that exact context; it’s often overlooked.
Q18: What if someone tried claiming a ‘fixer-upper’ refund but wants to withdraw it before HMRC penalties?
A18: HMRC absolutely lets you cancel a pending claim. In fact, withdrawing early shows good faith. You just write to them clarifying the mistake, and often that avoids penalties. It’s far better than letting a dubious claim go through.
About the Author
Mr. Maz Zaheer, FCA, AFA, MAAT, MBA, is the CEO and Chief Accountant of MTA and Total Tax Accountants—two of the UK’s leading tax advisory firms. With over 14 years of hands-on experience in UK taxation, Maz is a seasoned expert in advising individuals, SMEs, and corporations on complex tax matters. A Fellow Chartered Accountant and a prolific tax writer, he is widely respected for simplifying intricate tax concepts through his popular articles. His professional insights empower UK taxpayers to navigate their financial obligations with clarity and confidence.
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