SDLT16 Form Explained for SDLT Refund

HMRC has recently issued guidance on how to make claims for HMRC Stamp Duty Refund of the higher rates of SDLT paid on additional dwellings. The HMRC Stamp Duty Refund is available where a previous main residence is sold after a new property is purchased. This procedure can also be carried out by accountants on behalf of the main purchaser.

However, the qualification must be made within three years after purchasing a new property in the case of selling the previous main home. In some cases, the three-year rule can be extended, such as in cases of exceptional circumstances.

Qualifying for a Repayment via Form SDLT16

In cases where the sale of the old main residence is made within three years from the date of purchase of the new property, the main property owner who paid at the higher rate can claim the HMRC Stamp Duty Refund. If the sale happens after three years, one could still be eligible for a refund if certain conditions that were beyond their control to sell the previous home in time have been met.

HMRC have pointed out that exceptional circumstances in the usual course of sale of property transactions include not being able to find a buyer at the right price, negotiations taking time etc. Once the cause of delay gets resolved, the sale shall be completed without any further delay to prevent any jeopardy for claiming the HMRC Stamp Duty Refund.

Claim the HMRC Stamp Duty Refund with SDLT16 Form

The HMRC Stamp Duty Refund request has to be made within 12 months of either selling the previous home or from the SDLT return for the new property-whichever is later. Even under exceptional circumstances, the refund application for properties purchased on or after January 1, 2017, can still be submitted even after the three-year period.

Any key information that a seller will need to supply to submit their online claim comprises an SDLT unique transaction reference number, the effective dates of the sale and purchase, and the buyer's name for the previous home. For claims submitted by accountants on behalf of clients, there is a requirement for written consent from the client.

The repayment can be done online via the government gateway or by submitting form SDLT16, which can be downloaded from HMRC portal.

Conclusion

The new guidance by HMRC on SDLT repayment procedures has facilitated various ways in which those who have paid additional stamp duty on second properties, and having now disposed of the old main residence, can recover overpaid duty with their accountants.

Provided that all criteria are satisfied and the relevant information is submitted within the given timeframe, eligible persons will find claiming these HMRC refund straightforward-either online or with form SDLT16.