What Is a Stamp Duty Refund?

What Is a Stamp Duty Refund and Who Can Claim It?

If you’ve recently bought property in England or Northern Ireland, you may have paid more in Stamp Duty Land Tax (SDLT) than you actually owed. Thanks to the complexity of SDLT rules and frequent oversights in the process, many property buyers unknowingly overpay - sometimes by thousands of pounds. The good news? You may be eligible for a Stamp Duty refund.

At SCA Tax, we specialise in helping individuals and investors reclaim overpaid Stamp Duty, often due to missed reliefs, misclassifications, or incorrect surcharges. In this guide, we’ll break down what a stamp duty refund is, who can claim one, and why it’s worth having your transaction reviewed by a specialist.

A Stamp Duty refund is money you can claim back from HMRC if you paid too much SDLT when buying a property. This typically happens when:

A surcharge (such as the 3% for second homes) was wrongly applied
Your solicitor or conveyancer missed an applicable tax relief
The property was misclassified as residential when it should have qualified for a lower rate or exemption

In short, if the wrong tax band or calculation was used, or a relief was overlooked, you may be entitled to a stamp duty reclaim.

Common Scenarios That Lead to Overpaid Stamp Duty

There are several situations where property buyers might qualify for a refund:

1. Second Home Surcharge Refunds

If you paid the 3% SDLT surcharge for purchasing an additional home but then sold your previous main residence within 36 months, you may be eligible for a stamp duty refund on the surcharge.

2. Missed Multiple Dwellings Relief (MDR)

Buyers of properties with separate dwellings, such as annexes or multiple flats, can often benefit from MDR. This relief is frequently missed during conveyancing, resulting in overpayment.

3. Mixed-Use Properties

If the property includes both residential and non-residential elements (e.g. a flat above a commercial premises), it should be taxed at non-residential rates, which are lower and don’t include the 3% surcharge.

4. First-Time Buyers Overcharged

First-time buyers are eligible for SDLT relief up to £300,000. If the standard rates were wrongly applied, you may be due a refund.

5. Inheritance, Divorce or Transfers of Equity

Some transfers are exempt from SDLT, but errors are still made in processing them. If SDLT was charged in one of these circumstances, it may be reclaimable.

Time Limits for a Stamp Duty Reclaim

There are strict deadlines for making a claim:

12 months and 14 days to claim back the 3% second home surcharge
Up to 4 years from the date of completion for other types of refund claims

Missing these deadlines could mean losing the chance to recover your money.

Can You Reclaim Stamp Duty Yourself?

While HMRC provides a way to submit claims, the process isn’t simple. It requires detailed evidence, knowledge of SDLT legislation, and a clear explanation of why the original calculation was wrong.

That’s why many individuals choose to use SCA Tax. We manage the entire stamp duty reclaim process on your behalf:

Free review of your property transaction
Identification of reliefs or misclassifications
Full preparation and submission of your claim
Direct handling of HMRC correspondence
No-win, no-fee guarantee

Why Choose SCA Tax?

We are specialists in Stamp Duty reclaims - not general tax advisors. That focus means we understand the detailed nuances of SDLT law and know how to present strong, compliant claims that get results.

We’ve helped clients across the UK recover significant sums, often from purchases they made years ago.