New Forest


Home owners miss out on SDLT refunds

Home owners could miss out on being able to claim a refund for the additional rate of SDLT if they have been unable to sell their former home because of the COVID-19 pandemic.

The additional 3% SDLT charge applies to residential property purchases where a buyer already owns a residential property, e.g. if a new home is purchased before the sale of the old one. Provided the former home is sold within 3 years of the purchase of the new one, a refund of the 3% additional charge can be claimed.

As the property market is stagnant currently, many home owners in this position have been unable to sell their former home and therefore may fall outside of the time limits for claiming the refund.

The issue is also relevant in Scotland where a 4% additional dwelling supplement applies in relation to second homes, which can be reclaimed provided the former home is sold within 18 months of the new home purchase. Given the reduced time limit, much of which may fall within the lock down period, the CIOT have already flagged their concerns and called on the Scottish Government to set out the steps it plans to take to support house buyers in these circumstances.

It remains to be seen whether the Government (and the Scottish Government) will take any action to rectify the position for those impacted.


For further information on Stamp Duty Land Tax, please contact Gemma Hedges on 023 8046 1259.

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