By Umesh JyaniLast reviewed June 2026
Stamp Duty Refund: The 36-Month Main Residence Rule
If you paid the 5% additional property surcharge when moving house, you may be able to claim an SDLT refund — but only if you sell your old home within 36 months. Here's how it works.
You found your next home before your current one sold. Your solicitor warned you would pay the additional property surcharge — an extra 5 percentage points on every SDLT band. That can add tens of thousands of pounds to the bill.
The good news: if you sell your previous main residence within 36 months of buying the new one, HMRC allows you to claim most of that surcharge back. The bad news: the rules are strict, and missing the deadline means keeping the extra tax.
When the refund applies
The refund is for people who paid the additional property surcharge because they owned two homes at completion — not for other surcharges like the non-UK resident charge.
Typical scenario:
- You buy a new main home before selling the old one.
- You pay SDLT including the 5% additional property surcharge.
- You sell the previous main residence within 36 months of completing on the new purchase.
- You claim a refund of the surcharge amount.
If you never owned the old property as your main home — for example, it was already a buy-to-let — this refund route does not apply.
How much you get back
You reclaim the additional property surcharge portion of what you paid, not the whole SDLT bill. Standard rates still apply to the new home.
Use our buy-to-let stamp duty calculator to see the difference between standard and surcharged rates at your price, then subtract to estimate the refundable amount.
Deadlines you cannot miss
You must claim within the later of:
- 12 months from the date you sold your previous main residence, or
- 12 months from the filing deadline for the SDLT return on the new property.
Miss that window and the surcharge stays. There is no appeal for simply being late.
HMRC processes claims online. Your conveyancer can often handle this, but it is worth diarising the dates yourself — solicitors do not always follow up automatically.
What counts as your main residence
HMRC looks at where you actually lived, not which property you consider your “main” home on paper. If you rented out your old place before selling, the facts may complicate the claim. Unusual situations need solicitor advice.
Worked example
You buy a £400,000 new home while still owning a £350,000 house you are selling:
- Standard SDLT on £400,000: £10,000
- With additional property surcharge: £30,000
- Refundable surcharge if you sell within 36 months: £20,000
If you sell the old home 18 months later and claim within the time limits, HMRC repays the £20,000 surcharge. You keep paying the £10,000 standard SDLT.
Check the exact figure for your price on our stamp duty on £400,000 page.
Scotland and Wales
Scotland’s LBTT and Wales’s LTT have their own rules for replacing a main residence. Use our LBTT calculator or LTT calculator and check Revenue Scotland or the Welsh Revenue Authority guidance for refund procedures.
Before you rely on a refund
Budget as if you will not get the money back until it arrives. The surcharge is paid at completion. Cash-flow planning matters if you are stretching to buy before selling.
If you are negotiating completion dates, ask your solicitor whether the 36-month window is comfortable given your sale pipeline. Chain collapses have left buyers paying surcharges they never expected to keep.
Work out your stamp duty
Use our free calculators to see the exact bill for your purchase price, including any reliefs or surcharges that apply.