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Refunds on Higher Rate of Stamp Duty Land Tax

On the 1 April 2016, the Government introduced a higher rate of stamp duty land tax on the purchase of additional residential properties. However, where a person purchases a new main residence before selling their existing main residence, it is possible for them to obtain a refund for the additional amount of stamp duty land tax paid after completion of the sale, provided they meet the criteria listed below.

The requirements for making an application for a refund are as followed:

You have paid the higher rate of stamp duty land tax on an additional residential property and you have sold your previous main residence within 3 years of that purchase.
HMRC must receive your application within 3 months of the sale of the previous main residence, or within 12 months of filing the return on the new main residence.

HMRC will request the following information during the application process:

Details of the purchase and the Unique Tax Reference Number (UTRN) used to make the stamp duty land tax return
Details of the Sale
The person making the application must calculate what they consider they are entitled to and request the refund.  HMRC then assess the refund requested.

For more information, please see: https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties