Most landlords know you can reclaim the SDLT surcharge if you sell your old home within three years of buying your new one. Far fewer know exactly how that refund works, what the deadlines are, or what happens if life gets in the way.
You can reclaim the surcharge within 12 months if you sell your previous main home within 36 months of buying the new one. The refund is claimed by amending your original SDLT return, not by submitting a new one. Claims can be submitted to HMRC’s Birmingham Stamp Office by post or using the online repayment request form.
The deadline for making the claim is the later of two dates: 12 months from the date you sell the old property, or 12 months from the filing date of the original SDLT return on the new purchase. Missing this window means the refund is gone.
What if something genuinely prevents you from selling within three years?
HMRC can grant an extension where unforeseeable circumstances blocked the sale, such as government-imposed restrictions or serious issues like defective cladding rendering the property unsellable.
The extension is not automatic. HMRC expects the property to be sold as soon as reasonably possible once the obstacle is removed, and you would need to make the case clearly.
Say you complete a new home purchase in January 2025 and pay the surcharge. You list the old property immediately but a cladding issue emerges that prevents the sale for two years. If you can demonstrate that the delay was outside your control and you acted promptly once resolved, there is a reasonable case for an extension of the 36-month window.
If you think you might have missed a refund deadline or have circumstances that could justify an extension, it is worth taking professional advice before assuming the money is lost.