Check if you are eligible for a refund of the additional dwelling surcharge and calculate your potential SDLT refund.
This calculator provides estimates only. Refund eligibility depends on individual circumstances. The additional dwelling surcharge and refund rules may change. Always verify with HMRC and consult a qualified tax adviser before claiming.
If you purchased an additional property in England or Wales and paid the higher rate of stamp duty land tax (SDLT), you may be entitled to a refund. The additional dwelling surcharge of 5% is charged when you buy a second residential property while still owning your previous main residence. However, if you then sell your previous main residence within three years of purchasing the new one, you can apply to HMRC for a refund of the surcharge amount. This calculator helps you determine whether you are eligible for a stamp duty refund and shows the potential refund amount. Understanding the refund rules and deadlines is important, as many homeowners are unaware they can reclaim thousands of pounds. The refund only applies to the surcharge portion -- you will still need to have paid the standard SDLT rates on the property purchase. The calculator also shows your claim deadline so you do not miss the window for applying.
1. Enter the purchase price of the property on which you paid the additional dwelling surcharge. This is the price you paid when buying the new property, not your old one. 2. Enter the year and month of your purchase. This is used to calculate the 3-year window for selling your previous property and the claim deadline. 3. Confirm whether you paid the additional dwelling surcharge (5% surcharge) on the purchase. If you did not pay the higher rate, you are not eligible for a refund under this scheme. 4. Indicate whether you have sold your previous main residence. The refund is only available once the previous property has been sold. 5. Confirm whether the sale of your previous property occurred within 3 years of purchasing the new property. This is a strict time limit. 6. Review the results showing your eligibility status, the refund amount, and the deadline by which you must submit your claim to HMRC.
The stamp duty refund is calculated by comparing the total SDLT paid (including the 5% additional dwelling surcharge) against the standard SDLT that would have been payable without the surcharge. Standard SDLT is calculated using the progressive band system for 2026-27: 0% on the first GBP 125,000, 2% on the next GBP 125,000, 5% on the portion up to GBP 925,000, 10% up to GBP 1,500,000, and 12% above that. The additional dwelling surcharge adds 5% to each of these band rates. The refund amount equals the total surcharge paid, which is the difference between the surcharged total and the standard total. Eligibility requires three conditions to be met simultaneously: you must have paid the additional dwelling surcharge, you must have sold your previous main residence, and the sale must have occurred within 3 years of purchasing the new property. The claim deadline is the later of 12 months from the date you sold your previous property, or 3 years and 12 months from the date of the new purchase.
The additional dwelling surcharge was increased from 3% to 5% from 31 October 2024. If you purchased before this date, the surcharge was 3%. This calculator uses the current 5% rate. To claim a refund, you can write to HMRC at the Stamp Duty Land Tax team, amend your original SDLT return online, or use form SDLT14. You will need your SDLT unique transaction reference number (UTRN), completion date of the new purchase, and completion date of the sale of your previous property. HMRC typically processes refund claims within 15 working days, but complex cases may take longer. Interest may be payable by HMRC if processing takes more than 30 days from a valid claim. The refund rules apply specifically to replacing your main residence. They do not apply to buy-to-let investments or genuine second homes that you keep alongside your main residence. In Scotland, the equivalent is the Additional Dwelling Supplement (ADS) refund under LBTT rules, which has its own separate process and deadlines. Always keep records of both purchase and sale transactions, including completion statements and proof of dates, to support your refund claim.