Stamp Duty Refund: Can I Reclaim Stamp Duty on a Second Home?

If you’ve bought a second home or investment property in recent years, there’s a good chance you paid the 3% Stamp Duty Land Tax (SDLT) surcharge. It’s applied to most additional property purchases - even if it’s just a holiday home or a small buy-to-let.

But what if you shouldn’t have paid that extra tax? You might be due a Stamp Duty refund, and many people don’t realise it.

At SCA Tax, we help property buyers across the UK claim back overpaid SDLT, including refunds related to second homes. Here’s what you need to know.

What Is the Second Home Stamp Duty Surcharge?

When you buy a second residential property in England or Northern Ireland, you’ll typically pay an extra 3% on top of the usual Stamp Duty rates. This applies whether it’s a personal purchase, buy-to-let, or even a holiday home.

But this surcharge isn’t always applied correctly. And when that happens, it can lead to unnecessary overpayments, sometimes worth thousands of pounds.

When Can You Claim a Stamp Duty Refund on a Second Home?

There are a few common situations where you might be eligible for a refund:

1. You Sold Your Main Home Shortly After Buying Your New One

If you bought a new property before selling your old one, HMRC assumes you own two homes and charges the 3% surcharge. But if you then sold your original main residence within 36 months, you can usually claim that extra tax back.

2. Your Property Was Misclassified

Properties with commercial or mixed-use elements - like a flat above a shop, or a house with business premises - shouldn’t always be taxed as fully residential. If your purchase was incorrectly classified, you could have overpaid.

3. Complex Ownership Situations

There are cases where buyers were charged the surcharge, but shouldn’t have been, for example, if you inherited a share in another property or bought with someone who already owns a home. These situations can be tricky, but you might still be entitled to a refund.

Is There a Time Limit to Reclaim?

Yes, and it’s important not to miss it.

• If you’re reclaiming the 3% surcharge because you sold your previous main residence, you’ve got 12 months and 14 days from that sale to claim.
• For other refund reasons (like reliefs or classification errors), you usually have up to 4 years from your purchase completion date.

Either way, the sooner you check, the better.

How Do You Reclaim Stamp Duty?

There is a process to claim a Stamp Duty refund through HMRC. At SCA Tax, we take care of everything:

• A free review of your transaction
• Full investigation of refund eligibility
• Preparation and submission of the claim
• We deal with HMRC so you don’t have to
• And it’s all done on a no-win, no-fee basis

Why Choose SCA Tax?

We focus exclusively on Stamp Duty. That means we know the rules, the grey areas, and the most effective way to build a strong refund case.

We’ve recovered millions for clients across the UK - homeowners, landlords, businesses, and investors.

With us, you get:

• Expert SDLT advice
• A quick, clear answer on whether you’re owed a refund
• No upfront fees or obligations

Think You Overpaid on a Second Home?

If you bought an additional property in the past four years, and you're not sure if the Stamp Duty was calculated correctly, let’s take a look.

Start your free assessment here.