UK SDLT Additional Property Surcharge Refund Guide 2026/27

Q: When does SDLT additional property surcharge apply?

The higher rates are 5% on top of the standard SDLT rates (3% before 31 October 2024) when buying a residential property means you will own more than one (GOV.UK). Typical cases : a buy-to-let or second home; buying your new home before you have sold the old one. The rules apply to each buyer and their spouse or civil partner, so if a joint buyer or the buyer's spouse already owns a home, the higher rates usually apply. A transfer of a share of a home to your spouse, with no one else involved, does not attract the higher rates. Refund : if you paid the higher rates on a new main home because you had not yet sold the old one, you can claim the surcharge back once you sell it within 3 years.

Q: How do I claim the 3 per cent SDLT refund?

Despite the old name, the surcharge is now 5%. Step 1 : sell your previous main home within 3 years of buying the new one. Step 2 : apply online through GOV.UK, or fill in form SDLT16 and post it. The main buyer or their agent can apply. You need : your details (and the main buyer's if different); the new property's effective date and SDLT unique transaction reference number; the old home's effective date of sale, address and buyer's name; the tax paid; the amount to be repaid; and bank details. Deadline : HMRC must receive the request by the later of 12 months after the sale or 12 months after the filing date of the SDLT return for the new home (GOV.UK; FA 2003 Sch 4ZA para 8(3)).

Q: How much comes back on a 400k purchase with a 300k old home?

Buying a £400,000 home before selling the old one (rates from 1 April 2025): standard SDLT is £10,000 (0% to £125,000, 2% to £250,000, 5% above). With the 5% higher rates on every band the bill is £30,000. Sell the old home within 3 years and you can reclaim £20,000, leaving £10,000. The old home's value does not change the refund. If it is not sold within 3 years, the higher rates stand unless exceptional circumstances apply.

Q: What conditions must be met for the refund?

Under FA 2003 Sch 4ZA para 3(7): (1) you intended the new property to be your only or main residence when you bought it; (2) the home you sell was your only or main residence at some time in the 3 years before you bought the new one; (3) you (or your spouse or civil partner) dispose of it within 3 years beginning the day after you bought the new one, and afterwards neither of you owns a major interest in it. GOV.UK: you can still claim after 3 years only if you bought on or after 1 January 2017 and exceptional circumstances - usually affecting many people, such as government restrictions or action by a public authority - stopped the sale. Not finding a buyer, delays agreeing terms and chain breakdowns do not count.

Q: How does the refund work after divorce, probate or a job move?

Spouses and civil partners : the rules look at both of you, and a sale of the old home by either of you can count (Sch 4ZA para 3(7)(b)), as long as neither of you keeps a major interest in it. Transfers of a share of a home between spouses, with no one else involved, do not attract the higher rates (GOV.UK). Chains and slow sales : a chain breaking down or failing to find a buyer is not an exceptional circumstance, so the 3-year limit still applies. Inherited property and other complex cases : GOV.UK's higher rates guidance has specific rules; get advice from a conveyancer or tax adviser before you buy.

Q: How do I manage the SDLT surcharge on a purchase?

(1) Selling before you buy avoids the higher rates altogether, as long as you own no other home. (2) If you buy first, diary the 3-year sale deadline and the 12-month refund deadline. (3) Keep the SDLT unique transaction reference number and completion statements for both properties. (4) Apply as soon as the sale completes - online is free, and your conveyancer can apply as your agent with your signed consent. (5) If something outside your control prevents the sale, write to HMRC explaining why once you have sold (GOV.UK).

SDLT higher rates refund 2026/27: get the 5% surcharge back if you sell your old main home within 3 years. Deadlines and form SDLT16.

2026/27 tax year

Property & Landlord
England
Northern Ireland

If you paid the Stamp Duty Land Tax (SDLT) higher rates for additional properties (5% on top of the standard rates since 31 October 2024, 3% before) because you bought a new main home before selling your old one, you can claim the surcharge back if you sell the old home within 3 years. Apply online or on form SDLT16 by the later of 12 months after the sale or 12 months after the filing date of the SDLT return for the new home. SDLT applies in England and Northern Ireland; Scotland has LBTT and Wales LTT.

Frequently asked questions

When does SDLT additional property surcharge apply?

The higher rates are 5% on top of the standard SDLT rates (3% before 31 October 2024) when buying a residential property means you will own more than one (GOV.UK). Typical cases: a buy-to-let or second home; buying your new home before you have sold the old one. The rules apply to each buyer and their spouse or civil partner, so if a joint buyer or the buyer's spouse already owns a home, the higher rates usually apply. A transfer of a share of a home to your spouse, with no one else involved, does not attract the higher rates. Refund: if you paid the higher rates on a new main home because you had not yet sold the old one, you can claim the surcharge back once you sell it within 3 years.

How do I claim the 3 per cent SDLT refund?

Despite the old name, the surcharge is now 5%. Step 1: sell your previous main home within 3 years of buying the new one. Step 2: apply online through GOV.UK, or fill in form SDLT16 and post it. The main buyer or their agent can apply. You need: your details (and the main buyer's if different); the new property's effective date and SDLT unique transaction reference number; the old home's effective date of sale, address and buyer's name; the tax paid; the amount to be repaid; and bank details. Deadline: HMRC must receive the request by the later of 12 months after the sale or 12 months after the filing date of the SDLT return for the new home (GOV.UK; FA 2003 Sch 4ZA para 8(3)).

How much comes back on a 400k purchase with a 300k old home?

Buying a £400,000 home before selling the old one (rates from 1 April 2025): standard SDLT is £10,000 (0% to £125,000, 2% to £250,000, 5% above). With the 5% higher rates on every band the bill is £30,000. Sell the old home within 3 years and you can reclaim £20,000, leaving £10,000. The old home's value does not change the refund. If it is not sold within 3 years, the higher rates stand unless exceptional circumstances apply.

What conditions must be met for the refund?

Under FA 2003 Sch 4ZA para 3(7): (1) you intended the new property to be your only or main residence when you bought it; (2) the home you sell was your only or main residence at some time in the 3 years before you bought the new one; (3) you (or your spouse or civil partner) dispose of it within 3 years beginning the day after you bought the new one, and afterwards neither of you owns a major interest in it. GOV.UK: you can still claim after 3 years only if you bought on or after 1 January 2017 and exceptional circumstances - usually affecting many people, such as government restrictions or action by a public authority - stopped the sale. Not finding a buyer, delays agreeing terms and chain breakdowns do not count.

How does the refund work after divorce, probate or a job move?

Spouses and civil partners: the rules look at both of you, and a sale of the old home by either of you can count (Sch 4ZA para 3(7)(b)), as long as neither of you keeps a major interest in it. Transfers of a share of a home between spouses, with no one else involved, do not attract the higher rates (GOV.UK). Chains and slow sales: a chain breaking down or failing to find a buyer is not an exceptional circumstance, so the 3-year limit still applies. Inherited property and other complex cases: GOV.UK's higher rates guidance has specific rules; get advice from a conveyancer or tax adviser before you buy.

How do I manage the SDLT surcharge on a purchase?

(1) Selling before you buy avoids the higher rates altogether, as long as you own no other home. (2) If you buy first, diary the 3-year sale deadline and the 12-month refund deadline. (3) Keep the SDLT unique transaction reference number and completion statements for both properties. (4) Apply as soon as the sale completes - online is free, and your conveyancer can apply as your agent with your signed consent. (5) If something outside your control prevents the sale, write to HMRC explaining why once you have sold (GOV.UK).