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Higher Rates of Stamp Duty Land Tax: three-year refund window

03 June 2020

Proposing MP
Jesse Norman Con
Hereford and South Herefordshire
Type
Written Ministerial Statement
Department
Treasury
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At a Glance

Issue Summary

The statement addresses an issue with the three-year window for refunding higher rates of Stamp Duty Land Tax (SDLT) due to restrictions on property transactions during lockdown.

Action Requested

HMRC will extend the three-year window for SDLT refunds in cases where individuals were unable to sell their previous main residence due to exceptional circumstances beyond their control, with operational guidance and case-by-case decisions to be made by HMRC. Taxpayers must make a sale as soon as possible once such impediments are resolved.

Key Facts

  • More than 450,000 people have been unable to progress with property transactions since March due to lockdown restrictions.
  • The Government has lifted some housing market restrictions following updated regulations on 13 May 2020.
  • An extension of the three-year window for SDLT refunds will be granted by HMRC in specific cases if exceptional circumstances prevented a sale within the original timeframe.
  • This amendment applies to those whose refund window ended on or after 1 January 2020.
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