If you’ve bought a second home or investment property in England or Northern Ireland, chances are you’ve paid the 5% Stamp Duty Land Tax (SDLT) surcharge. But what if your situation changes and you no longer need to pay that extra tax? The good news is: you might be able to claim a refund — and in 2025, the process is clearer and more digital than ever.
Let’s walk through how the 5% SDLT surcharge refund works, who qualifies, what deadlines you need to know, and how to make sure you actually get your money back.
What Is the 5% SDLT Surcharge?
Since 1 April 2016, anyone buying an additional residential property in England or Northern Ireland — think buy-to-lets, second homes, or holiday homes — has had to pay a 5% surcharge on top of the usual stamp duty rates.
So, if your property cost £400,000, you could end up paying an extra £12,000 in tax just because you already own another home.
But here’s where things get interesting: if you sell your previous main home within a certain window after buying the new one, you can claim a refund of that 5%.
Who Can Claim a Refund in 2025?
To qualify for a refund of the 5% surcharge in 2025, you need to meet three main conditions:
- You bought a new home (and paid the surcharge) before selling your previous main residence.
- You sold your previous main residence within 56 months of buying the new one.
- You intend to live in the new property as your main home.
Let’s say you bought a new house in June 2025 but hadn’t sold your old one yet — so you paid the 5% surcharge. Then, in January 2025, you finally managed to sell the old home. As long as the sale happened within 56 months of the purchase, you’re eligible for a refund.
How Much Can You Get Back?
The refund covers only the 5% surcharge, not the entire SDLT bill. Here’s a quick example:
- Purchase price: £500,000
- Standard SDLT (2025 rates): £12,500
- 5% surcharge: £15,000
- Total paid: £27,500
- Refund available: £15,000
That’s a big chunk of change — and worth chasing if you’re eligible.
What’s New in 2025?
In 2025, HMRC has made the refund process more user-friendly by improving its online SDLT refund portal. You can now:
- Submit your claim digitally with fewer documents
- Track the status of your refund in real time
- Get support via live chat or phone
Plus, if your solicitor or conveyancer paid the SDLT on your behalf, they can help you claim — or you can do it yourself using your Unique Transaction Reference Number (UTRN).
When Do You Need to Claim?
You must claim the refund within 12 months of selling your previous main home, or within 12 months of the filing date of your original SDLT return — whichever is later.
Miss the deadline? You may be out of luck, unless you have exceptional circumstances and can convince HMRC to make a discretionary exception (which they rarely do).
So don’t put it off — once the old home sells, start the refund claim right away.
How to Claim the 5% SDLT Refund
Here’s a simple step-by-step guide:
- Go to HMRC’s SDLT refund page
- Log in or register for a Government Gateway account
- Provide details like:
- UTRN from your original SDLT return
- Purchase and sale dates
- Property addresses
- Your bank account details for the refund
Upload any supporting documents (e.g., sale completion statement) Submit your claim and keep the confirmation for your records
Most refunds are processed in 4–6 weeks, but it could be longer if HMRC needs more information or if your claim is flagged for review.
Common Mistakes to Avoid
- Missing the 56-month deadline: If you sell even one day late, you lose the refund.
- Not checking your eligibility: If the new property isn’t your main home, you probably won’t qualify.
- Letting your solicitor handle it — but forgetting to follow up: It’s your money, so chase it if it goes quiet.
- Filing with incorrect dates: Double-check purchase and sale completion dates — small errors can delay or derail your claim.
Final Thoughts
The 5% SDLT surcharge can feel like a nasty sting — especially if you’re caught in a slow property chain or stuck with two homes. But the refund offers a real chance to claw that money back if things work out.
In 2025, with HMRC’s improved digital systems and rising property values still keeping SDLT bills high, there’s no excuse not to stay on top of it. So if you’ve sold your old home and moved into the new one, don’t wait around. Submit your refund claim and get back what’s yours.
After all, £10,000 or £15,000 could go a long way toward that new kitchen, paying down your mortgage — or even a well-deserved holiday.
