Stamp duty and second homes – relief extended

Understanding Stamp Duty on Second Homes

Since 1 April 2016, buyers of second homes must pay an extra 3% Stamp Duty Land Tax (SDLT) surcharge. This applies even if the second home is only temporary.

Many homeowners faced difficulties reclaiming the surcharge due to strict time limits. Fortunately, the government extended the refund period, giving buyers more flexibility.

Extended Relief: What’s Changed?

Initially, buyers had 18 months to sell their original home and claim a refund of the stamp duty on second homes. However, this has now been extended to 36 months, making it easier to reclaim the surcharge.

To qualify for a refund:

• The first property must be sold within 36 months of buying the second home.
• The SDLT refund claim must be submitted to HMRC within 12 months of selling the first home or within 12 months of the SDLT filing deadline (whichever is later).

This extension gives homeowners more time to manage property transitions without losing out financially.

Who Benefits from the Extended Relief?

The extended relief particularly helps homeowners who face delays selling their first property. This includes:

• Those experiencing slow market conditions.
• Homeowners dealing with unexpected sale complications.
• Buyers relocating for work but struggling to sell their previous home quickly.

If the first home sells within the timeframe, the stamp duty on second homes can be refunded, reducing overall costs.

How We Can Help

Understanding stamp duty on second homes and reclaiming the surcharge can be complex. At Lewis Brownlee, we ensure you receive the relief you’re entitled to.

If you need help navigating SDLT rules, contact us today. Our team is here to assist you.