HMRC form out now for reclaiming 3% supplemental Stamp Duty when original residence sold

A new online form is now available for claiming back the 3% supplemental Stamp Duty Land Tax (SDLT) payable when a new home is bought when an original residence is retained.

The supplement is not payable where the new property replaces a main home where there is no delay in selling the original home.

SDLT must be paid when buying a property or land over £125,000 for residential properties, and £150,000 for non-residential land and properties, in England, Wales and Northern Ireland.

A supplemental 3% SDLT may be charged on purchases of residential property completed on or after 1 April 2016 if a new home is purchased before the old one is disposed of. Where the SDLT supplement has to be paid, it can be reclaimed within the next three years but only at a time when only one home is owned. The supplement is calculated in relation to the full purchase price (where it is £40,000 or more).

Now HMRC has updated its guidance on completing SDLT returns. This includes an online form to reclaim the supplemental 3% SDLT charge if an individual subsequently sells their previous only or main residence. The revised guidance contains a link to an online claim form that can be completed on-screen and, for the time being, must be printed out and posted to the Birmingham Stamp Office.

HMRC aims to process all repayments within 15 working days of receipt of the repayment form.

Interest will be added to the repayment but no compensation is payable if HMRC takes longer than 15 working days to process the repayment.

For further information please contact Madelaine Henwood 0208 290 0333 or email

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