If you bought a house or flat after 1 April 2016, you may have paid a stamp duty land tax (SDLT) supplement of 3% on the entire value. This supplement is generally not due when you replace your main home, even if you end up owning more than one residential property after the purchase.
However, when you buy your new property before you sell your former main home, the SDLT supplement is initially payable. You can then reclaim the SDLT 3% supplement if the sale of your former home is completed within three years of your new purchase.
The SDLT can be reclaimed either online or by post using form SDLT16, which can be completed online and printed off. You will need the SDLT reference for the purchase.
The claim must be made by the later of: three months from the date of completion of the sale of the former home (i.e., the most recent transaction), or 12 months from the filing date of the SDLT return (30 days from the completion of the purchase). If this deadline is missed you will lose the opportunity to reclaim the SDLT supplement.
Where your new home is in Scotland, Land and Buildings Transaction Tax (LBTT) applies in place of SDLT. The 3% supplement still applies, but you only have 18 months in which to replace your main home.
From 1 April 2018 Wales will have its own version of SDLT, with different rates and thresholds. If you are looking to buy a property in Wales it may be best to complete the purchase before next April.