Stamp Duty Land Tax is one of the largest upfront costs when buying a property in England and Northern Ireland. But it's also one of the most commonly overpaid taxes. HMRC processes tens of thousands of SDLT refund claims every year, returning millions of pounds to homeowners who paid more than they legally owed.
This guide explains every legitimate route to a stamp duty refund, the deadlines involved, and how to decide whether to claim yourself or use a specialist.
In this guide:
- Chattels refund — the most common opportunity
- Second home surcharge refund
- Uninhabitable property claims
- First-time buyer relief
- Mixed-use property
- How to claim
- Key deadlines
- Warning: claims firms
- Frequently asked questions
1. Chattels refund — the most common opportunity
SDLT is charged on land and buildings — but not on moveable items (chattels) included in the purchase. If your property came with carpets, curtains, furniture, or white goods, the value of those items should have been deducted from the purchase price before calculating SDLT.
In practice, this deduction is frequently missed. The solicitor completing your SDLT return may not have asked about chattels, HMRC's own calculator doesn't prompt for it, and most buyers don't know the option exists.
The legal basis is the Finance Act 2003, Schedule 4, Paragraph 4, which requires the purchase price to be apportioned on a "just and reasonable" basis. HMRC's internal guidance at SDLTM04010 confirms that chattels should be excluded from the chargeable consideration.
Quick example
Property purchased for £500,000 with £8,000 of chattels (carpets, curtains, white goods, garden items). SDLT on £500,000 = £12,500. SDLT on £492,000 = £12,100. Potential refund: £400.
For a £1.5M property with £30,000 of chattels, the refund could be £3,600 because the marginal rate is 12% above £925,000.
For a complete guide to which items qualify, see our detailed page on what counts as a chattel for SDLT purposes.
2. Second home surcharge refund
If you bought a new main residence before selling your previous one, you will have paid the 5% additional property surcharge (increased from 3% in October 2024). This applies because, at the point of purchase, you owned two residential properties.
However, if you sell your previous main residence within 3 years of buying the new one, you can claim a refund of the surcharge. This can be a significant amount — on a £400,000 purchase, the 5% surcharge is £20,000.
To claim, you need to complete HMRC form SDLT16 and submit it within 12 months of selling the old property (or within 3 years of buying the new one, whichever is later). The form is available on GOV.UK.
Key conditions: the old property must have been your main residence, and you must have intended the new property to be your replacement main residence at the time of purchase.
3. Uninhabitable property claims
If a property was genuinely not suitable for use as a dwelling at the time of purchase, it may qualify for non-residential SDLT rates, which are significantly lower than residential rates. The difference can be tens of thousands of pounds on higher-value properties.
Proceed with caution
HMRC has publicly stated that it believes 95% of uninhabitability claims are incorrect. The courts have set a very high bar — a property needing repairs, redecoration, or modernisation does not automatically qualify as uninhabitable.
The leading case law, including Mudan v HMRC [2025], established that the test is whether the property could be used as a dwelling at the date of purchase — not whether it was in good condition or met modern standards. A property with no working heating but functional plumbing, electricity, and a weatherproof structure was held to be habitable.
If you believe your property was genuinely uninhabitable — for example, it had been condemned, had no roof, or had severe structural failure — take professional advice before claiming. Do not rely solely on a claims firm's assessment.
4. First-time buyer relief
First-time buyer (FTB) relief provides a higher nil-rate band for qualifying purchasers. Since April 2025, FTBs pay no SDLT on the first £300,000 of properties up to £500,000 (previously £425,000 on properties up to £625,000).
If FTB relief was incorrectly missed on the original return, it can be claimed back. This sometimes happens when:
- One buyer is a first-time buyer but the solicitor applied standard rates because the other buyer had previously owned property (FTB relief applies to individual purchasers, not the transaction).
- The solicitor was unaware the buyer qualified as a first-time buyer.
- The property price was incorrectly recorded above the FTB threshold.
To correct this, amend the SDLT return (within 12 months + 14 days) or make an overpayment relief claim (within 4 years).
5. Mixed-use property
If a property includes genuine non-residential elements — such as a commercial unit, agricultural land, or business premises attached to a dwelling — it may qualify for non-residential SDLT rates, which are lower than residential rates.
HMRC is challenging these claims
The non-residential element must be genuine and significant — a home office or a paddock used recreationally is unlikely to qualify. Properties with genuine commercial leases, agricultural tenancies, or separate business units have a stronger case.
This is a specialist area. If you believe your property qualifies, take advice from a tax professional with specific SDLT experience before making a claim.
6. How to claim
The mechanics of claiming depend on the type of refund and how long ago you completed the purchase. For a full step-by-step walkthrough, see our detailed How to Claim a Stamp Duty Refund guide.
In summary: you can either amend your original SDLT return (within 12 months + 14 days of filing) or make an overpayment relief claim by post to HMRC (within 4 years of completion). Both routes require a supporting schedule of chattels with valuations and a revised SDLT calculation.
7. Key deadlines
| Claim type | Deadline |
|---|---|
| SDLT return amendment | 12 months + 14 days from filing date |
| Overpayment relief (chattels, FTB, etc.) | 4 years from the effective date |
| Second home surcharge refund | 3 years from purchase of new property |
| HMRC compliance check window | 9 months after processing the claim |
8. Warning: claims firms
The stamp duty refund industry has grown rapidly, and not all participants operate with the same standards. The Chartered Institute of Taxation (CIOT), the Law Society, and HMRC have all issued warnings about aggressive claims practices.
The CIOT published an article titled "Stamp duty refunds: too good to be true?" (updated August 2025) warning homeowners about firms that promise large refunds without proper assessment of the individual circumstances.
Red flags to watch for:
- Firms that promise a specific refund amount before seeing your documents
- Unsolicited letters or cold calls claiming you're "definitely owed" money
- Firms that push uninhabitability or mixed-use claims without thorough assessment
- Fees that are unclear or have hidden charges beyond the headline percentage
- Firms that won't explain exactly what they're claiming and on what basis
A reputable specialist will assess your specific situation, explain the legal basis for the claim, provide realistic refund estimates, and be transparent about fees and risks.
Frequently asked questions
Can I get a stamp duty refund?
Yes, in several situations. The most common is overpayment on chattels (moveable items like carpets and curtains included in the purchase). You can also claim a refund of the additional property surcharge if you sell your previous main residence within 3 years, or if first-time buyer relief was incorrectly missed.
How much stamp duty refund can I get?
The amount depends on the value of chattels included in your purchase and your property's price band. Typical chattels refunds range from £200 to £5,000+, with higher-value properties generating larger refunds due to higher marginal SDLT rates. Second home surcharge refunds can be much larger — potentially £10,000 or more.
How long does a stamp duty refund take?
HMRC typically processes refund claims within 15 to 30 working days. You must claim within 4 years of the purchase date for chattels overpayment, or within 3 years for second home surcharge refunds.
Is it worth using a stamp duty refund company?
It depends on the size of your claim. For refunds over £1,000, a specialist can provide professional valuations and handle HMRC correspondence. For smaller claims (under £500), the fees (typically 30-50% of the refund) may not leave you with enough to justify the cost. You can always claim directly from HMRC yourself.
Can HMRC reject my stamp duty refund claim?
Yes. HMRC has 9 months after processing to open a compliance check. If they consider the chattel valuations unreasonable or the claim inaccurate, they can reject part or all of the claim. Penalties may apply for careless or deliberate inaccuracies. This is why realistic, evidence-based valuations are essential.
Do I pay stamp duty on furniture included in a house purchase?
No. Free-standing furniture is classified as a chattel and is exempt from SDLT. If the purchase price included furniture and you paid stamp duty on the full amount, you may have overpaid and could be entitled to a refund.
Find out if you're owed a refund
Our free tools help you check your SDLT liability and estimate your potential refund — no sign-up required.