The Complete 2025 Guide to Stamp Duty Refunds

Stamp Duty Land Tax (SDLT) is one of the major costs when buying property in England and Northern Ireland. But many buyers overpay - sometimes by thousands - because certain reliefs or refund options are overlooked. In 2025, the rules have changed in some areas, so it’s more important than ever to know what you can claim.

In this guide, we walk you through:

• What a stamp duty refund is
• Situations where a refund or relief is available
• How much you might get back
• The process of claiming
• Time limits and risks

1. What Is a Stamp Duty Refund?

A stamp duty refund occurs when a buyer qualifies for relief or exemption that was not applied at the time of purchase, allowing them to reclaim part (or all) of the SDLT previously paid.

It’s different from a reduction upfront - this is about claiming back overpaid tax after the fact, where a relief should have been used but wasn’t.

2. Key Reliefs & Situations That Could Trigger a Stamp Duty Refund in 2025

If you overpaid SDLT or certain reliefs weren’t applied, you could be eligible for a refund. Here are the main reliefs relevant in 2025:

1. First-Time Buyer Relief

• What it means: First-time buyers may pay reduced SDLT or 0% up to certain thresholds.
• Key conditions:
  • Properties up to £500,000
  • 0% SDLT on the first £300,000
  • 5% on the remaining portion

Source: GOV.UK

2. Refund of Higher Rates (Additional Property Surcharge)

• What it means: If you paid extra because you owned another property, you may be able to reclaim the surcharge.
• Key conditions:
  • Additional property surcharge increased to 5% as of 31 October 2024
  • If your purchase replaces your main residence and you sell your previous home within a defined period, you may be eligible for a refund

3. Probate / Estate Relief

• What it means: Properties purchased from the estate of a deceased person (via probate) may qualify for full SDLT exemption.
• Key conditions:
  • Applies to probate transfers
  • SDLT is treated as non-chargeable in most cases

4. Non-Resident Buyer Refunds / Changes in Residency

• What it means: Non-UK residents who paid the surcharge may be eligible for refunds if their residency status changes.
• Key conditions:
  • 2% surcharge applies for non-residents buying residential property
  • Refund eligibility depends on residency changes after the purchase

5. Mixed-Use / Non-Residential Component

• What it means: If part of the purchase is commercial or non-residential, a lower SDLT rate may apply.
• Key conditions:
  • Non-residential use must be genuine
  • Classification can significantly reduce the effective SDLT rate

3. How Much Could You Get Back?

This varies widely depending on the case. Examples:

• The surcharge refund can often amount to 5% of the purchase price (if wrongly applied)
• Probate relief can lead to full exemption, meaning you might reclaim 100% of SDLT
• Mixed-use classification or relief could reduce SDLT significantly

In many successful cases, refunds run from a few thousand pounds up to tens of thousands, depending on property value and misapplied charges.

4. The Claim Process: Why Specialist Help Matters

Claiming a stamp duty refund isn’t as simple as filling out a form. HMRC rules are complex, and certain reliefs are easy to miss - even experienced buyers, solicitors, or conveyancers sometimes overlook them.

At SCA Tax, we handle the entire process on your behalf, including:

• Reviewing your property purchase and SDLT return to identify any overlooked reliefs
• Gathering the necessary documentation and liaising with solicitors or estate agents
• Submitting the claim to HMRC and managing communications throughout
• Ensuring that you receive the maximum refund available under the law

This approach removes the stress and risk of errors, giving you confidence that your refund is handled correctly and efficiently.

Tip: Many buyers only realise they’ve overpaid after completion - specialist review can unlock thousands in refunds that would otherwise be lost.

5. Time Limits & Deadlines

• For surcharge refund (higher rates): You must apply within 12 months of the later of the property sale of your previous home or the filing date of your SDLT return. 
• General SDLT refund / overpayment claims: Usually within 4 years from the date the SDLT was originally chargeable
• Beware: if you wait too long, you may lose the right to reclaim

6. Why Getting a Specialist Review Makes a Difference

• SDLT rules are complex and technical, especially around probate, non–residency changes, and surcharge refunds
• Many conveyancers or solicitors may miss niche reliefs or statutory refund rights
• A specialist review before completion (or soon after) can protect your right to refund and avoid overpayment

Next Steps

If you’ve purchased a property (or are about to), it is well worth:

• Checking your SDLT calculation and whether you overpaid
• Reviewing whether reliefs or refunds are available
• Seeking a specialist review to avoid losing entitlement