How Far Back Can You Claim a Stamp Duty Refund?

If you’ve recently discovered that you may have overpaid Stamp Duty Land Tax (SDLT) on a property purchase, you might be wondering whether it’s still possible to reclaim the excess, even if the purchase took place years ago.

The good news is that HMRC allows retrospective SDLT refund claims, but only within strict legal timeframes. Understanding how far back you can claim a stamp duty refund is essential to avoid missing out. In this article, we explain the relevant deadlines, the different rules depending on the type of refund you're claiming, and what you can do to protect your claim.

What Is the Time Limit for Claiming a Stamp Duty Refund?

In most cases, stamp duty refund claims must be made within 12 months and 14 days from the date on which the original SDLT return was filed with HMRC. However, depending on the type of refund you are pursuing - such as Multiple Dwellings Relief (MDR), the higher rate surcharge, or a misclassification related to mixed-use or uninhabitable status - the time limits can vary significantly.

In some scenarios, claimants have up to four years from the effective date of the transaction to make a claim. That’s why it’s critical to understand which type of claim applies to your situation.

HMRC Time Limits by Claim Type

1. Second Home Surcharge Refunds

When you purchase a second residential property, a 3% higher rate of SDLT is usually applied. However, if you sell your previous main residence within a specified period, you may be eligible to reclaim that surcharge.

HMRC allows you to claim a refund of the surcharge if you sell your previous main home within 36 months (three years) of purchasing the new one. The deadline for making the refund claim is the later of:

• 12 months from the date you sold your previous main residence, or
• 12 months and 14 days from the date of filing your original SDLT return.

This means some claims can be made nearly three years after the purchase, depending on the sequence of transactions.

2. Multiple Dwellings Relief (MDR)

Multiple Dwellings Relief is a valuable tax relief available when you purchase more than one dwelling in a single transaction or as part of a linked transaction. However, many buyers either do not claim MDR when they should or claim it incorrectly due to poor advice or misunderstanding of the criteria.

The time limit for amending an SDLT return to claim MDR is relatively short. You must usually submit the claim within 12 months and 14 days of the date on which the SDLT return was initially filed.

Missing this deadline typically results in a loss of entitlement to the relief unless there is a clear error in the original return that can be corrected under HMRC’s error correction provisions.

3. Mixed-Use or Uninhabitable Property Reclassification

Where a property has been incorrectly treated as residential, when it should have been classed as mixed-use (for example, with commercial land or a separate commercial unit), or if it was uninhabitable at the time of purchase, the SDLT may have been overpaid.

In these cases, HMRC typically allows claims to be made within four years from the effective date of the transaction. This falls under the provisions for correcting errors in SDLT returns.

This extended time window is particularly useful for those who were misadvised or unaware that they had grounds for a claim at the time of purchase.

What Happens If You Miss the Deadline?

Unfortunately, if you try to submit a refund claim after the relevant time limit has passed, HMRC is likely to reject it - even if the original SDLT was overpaid.

This is one of the most common issues we encounter at SCA Tax. Many clients come to us after receiving poor advice from solicitors or unaware that they could challenge their original SDLT classification. That’s why timing is crucial. If you’re unsure whether your window to claim is still open, our team can assess your case.

Why Choose SCA Tax?

We specialise exclusively in SDLT reassessment and refund claims. Unlike generalist solicitors, our team has in-depth knowledge of the complex rules surrounding HMRC’s stamp duty system - and a proven track record of recovering overpaid tax for clients who were wrongly charged.

There is no upfront cost for our assessment service, and we operate on a success-based model for eligible claims. If we don’t think you qualify, we’ll tell you straight away.

Take Action Before Time Runs Out

Time limits on stamp duty refund claims are strict, and thousands of people miss out every year simply because they waited too long. If you even suspect you might be owed a refund, get in touch with our team today.

Start your free assessment here.