Refund of the higher rates
This applies when the new home replaces your main home, and you still owned the old one on completion day.
- Step 1
Pay the higher rates now
Your conveyancer pays them within 14 days of completion. - Step 2
Sell by: within 36 months
Sell your previous main home within 36 months of completing on the new one. - Step 3
Claim by: within 12 months
Claim within 12 months of the sale, or 12 months of the filing date of your return if that is later. Apply online or by post to HMRC.
Conditions: the previous home must have been your main home at some point in the three years before the purchase, and the new home must be your main home. If you are married or in a civil partnership, a sale by your spouse or partner can count.
Example: £300,000 new home, old home not yet sold (payable now)
£20,000
Show workings
- 5% on £125,000 (£0 – £125,000) = £6,250
- 7% on £125,000 (£125,000 – £250,000) = £8,750
- 10% on £50,000 (£250,000 – £300,000) = £5,000
That leaves £5,000 after a refund of £15,000, if you qualify. How to apply: see HMRC's guidance on additional homes.
Refund of the 2% non-resident surcharge
You can usually reclaim it if you spend at least 183 days in the UK during any continuous 365-day period inside a two-year window around completion.
The highlighted 365-day period is one example: it spans completion and still counts. It can sit anywhere inside the window.
Claims are made by amending your return, and HMRC sets time limits for this. Joint buyers and companies have extra rules. HMRC non-resident guidance
Scotland: Additional Dwelling Supplement
ADS refund when replacing your main home
If you paid the 8% ADS and sell your previous main home within 36 months, you can usually reclaim it from Revenue Scotland. Revenue Scotland has its own conditions and claim deadline. Revenue Scotland ADS guidance
Wales: higher rates
LTT higher-rates refund when replacing your main home
If you paid the higher LTT rates and sell your previous main home within 36 months, you can usually claim the difference back from the Welsh Revenue Authority, under its own conditions and deadline. Welsh Revenue Authority
Not sure which rates you paid? Recalculate with your situation.