Q&A Can I get extra stamp duty/land tax refunded now I’ve sold original house?

Q:        Eighteen months ago, I purchased a new property as my main residence. Unfortunately, the sale of the property I was living in previously fell through, but I was still able to go ahead with purchasing the new property using money I had inherited from my parents. Due to the purchase of the new property completing prior to me selling the old property, I had to pay stamp duty at the higher rate as it was classed as a second property. I have now finally completed on the sale of the old property, so I am wondering whether I am entitled to claim a refund of the additional duty that I paid?

A:        If you purchase a new property as your main residence before completing a sale on your original main residence, you have three years in which to claim a refund from the relevant Revenue (HMRC/Welsh Revenue Authority) depending on whether the property is England or Wales.  The refund is the rate you would have paid if you had sold and bought at the same time, minus the higher rate applied for a second property.

You can claim the refund yourself, or alternatively your solicitor can do this on your behalf.  There are online forms to complete, which require the following information: (1) Your 12-digit Unique Transaction Reference Number (UTRN) from your return,

(2) the effective date of the transaction (usually the day you completed the property purchase), (3) the address and postcode of your former main residence, (4) details about the buyer, including: full name; date of birth; if there were any other buyers (and whether they’re married), (5) the calculated refund amount, (6) evidence to show the previous main residence has been sold, (7) bank details of where the refund it to be remitted.                                                                                                                                                         If the property is in England, the form can also be submitted by post.

This question has been answered by Clare Lewis, a Licensed Conveyancer with GHP Legal.  If you would like to speak to someone about this or any other legal matter, please visit our website www.ghplegal.com and use the contact us form, or call us on: Wrexham 01978 291456, Llangollen 01978 860313, Oswestry 01691 659194 

Clare Lewis

Clare Lewis

Licensed Conveyancer

Licensed Conveyancer in our Wrexham office.