Stamp Duty on a Second Home: Can You Claim a Refund?
If you sold your main residence within 3 years, you may be owed thousands back.
How the 5% surcharge works
Since 31 October 2024, anyone buying an additional residential property in England or Northern Ireland pays a 5% surcharge on top of standard SDLT rates. This applies to second homes, buy-to-let properties, and any purchase where the buyer already owns another residential property anywhere in the world.
The surcharge is calculated on the entire purchase price and added to every SDLT band. On a £350,000 property, the surcharge alone is £17,500 — on top of the £7,500 standard SDLT, making the total bill £25,000.
The 3-year replacement rule
If you bought a new main residence before selling your old one, you'll have paid the surcharge at completion. But HMRC allows you to reclaim it if you sell your previous main home within 3 years of buying the new one. This is known as the “replacement of main residence” relief.
The refund covers the full surcharge amount. On a £350,000 purchase, that's £17,500 back in your pocket. The claim must be made within 12 months of the sale of the old property.
Do you qualify for a refund?
You paid the 5% surcharge
Your SDLT return or completion statement shows the additional property surcharge was applied to your purchase.
You sold your previous main home within 3 years
The sale of your previous main residence completed within 3 years of purchasing the new property.
Your claim window is still open
You must claim within 12 months of selling the old property, or 12 months after the SDLT filing date — whichever is later.
How much could you get back?
Here's what a typical surcharge refund looks like on a £350,000 second home:
| Purchase price | £350,000 |
| Standard SDLT | £7,500 |
| 5% surcharge | £17,500 |
| Total paid | £25,000 |
| Surcharge refund if you sell within 3 years | £17,500 |
Based on April 2025 SDLT rates for additional property purchases. Use our SDLT calculator for your exact figures.
On top of the surcharge refund, you may also be able to claim back SDLT overpaid on chattels (carpets, curtains, appliances) included in the purchase. Use our refund estimator to check.
Frequently asked questions
How long do I have to claim the surcharge refund?
You must apply within 12 months of the sale of your previous main residence, or 12 months after the filing date of the SDLT return for the new property — whichever is later. The sale must happen within 3 years of the new purchase.
What if I didn't sell my previous home — can I still claim?
The surcharge refund specifically requires the sale of your previous main residence. If you still own both properties and neither has been sold, you cannot reclaim the surcharge. However, you may still be able to claim a chattel-based refund on the overpaid SDLT.
How do I claim the 5% surcharge back from HMRC?
You apply by writing to HMRC's Stamp Duty Land Tax office with your SDLT reference number, the sale details of your previous home, and evidence that it was your main residence. HMRC aims to process claims within 15 working days.
Can I claim stamp duty back if my partner already owns a home?
If your partner (married or civil partner) already owns a property, the surcharge applies to your purchase even if it's your first property. However, if your partner sells their existing property within 3 years of your joint purchase, you can reclaim the surcharge.
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