What stamp duty rate do home movers pay?

Home movers replacing their main residence pay standard residential rates: 0% up to £250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% above £1.5m. If you own two properties at completion, you pay an additional 3% surcharge, but can reclaim it if you sell within 36 months.

What is the 36-month refund window?

If you buy a new main residence before selling your old one, you initially pay a 3% surcharge. If you sell the old property within 36 months of purchasing the new one, you can claim a full refund of the 3% surcharge. You must apply to HMRC within 12 months of selling the old property.

Do I pay extra stamp duty if I use bridging finance?

Using a bridge loan doesn't change the stamp duty rules. If you own both properties at completion, you pay the 3% surcharge. You can reclaim it once you sell the old property within 36 months. The bridge loan is simply a financing method.

What happens if a house chain breaks?

If the chain breaks and you can't complete, no stamp duty is due because no purchase has occurred. If you complete the new purchase but your onward sale falls through, you pay the 3% surcharge but can claim a refund once the old property sells (within 36 months).

Can I avoid the surcharge by timing my purchases?

Yes. If you sell your old property and complete that sale before buying the new one, you won't own two properties simultaneously and won't pay the 3% surcharge. However, this creates timing risk and you may need temporary accommodation.

Home Mover Stamp Duty Guide 2026

Standard Home Mover Rates

When you're moving from one main residence to another and don't own any other property at the point of completion, you pay the standard residential stamp duty rates:

Standard Rates (2026)

£0 - £250,0000%

£250,001 - £925,0005%

£925,001 - £1,500,00010%

Above £1,500,00012%

These rates apply in a tiered structure, meaning you pay the rate on each band individually, not the entire purchase price.

Example: £400,000 Purchase (Sold Old Home First)

£0 - £250,000: 0% = £0

£250,001 - £400,000: 5% = £7,500

Total SDLT: £7,500

Key Point:

The critical factor is whether you own another property at the point of completion on your new purchase. Contracts exchanged or properties owned previously don't matter — only ownership on completion day.

Owning Two Properties Temporarily

Many home movers need to buy their new property before selling the old one. This creates a temporary period of owning two properties.

The 3% Surcharge

If you own more than one residential property on completion of your purchase, you pay an additional 3% on top of standard rates:

Surcharge Rates (Two Properties)

£0 - £250,0003%

£250,001 - £925,0008%

£925,001 - £1,500,00013%

Above £1,500,00015%

Example: £400,000 Purchase (Still Own Old Home)

£0 - £250,000: 3% = £7,500

£250,001 - £400,000: 8% = £12,000

Total SDLT: £19,500

(£12,000 more than standard rates)

However, this surcharge is reclaimable if you're replacing your main residence and sell the old property within 36 months.

The 36-Month Replacement Window

If you purchase a new main residence while still owning your previous main residence, you can reclaim the 3% surcharge provided you:

Sell your old main residence within 36 months of purchasing the new one
The old property was your main residence
The new property becomes your main residence
You claim the refund within 12 months of selling the old property

Good News:

The 36-month window gives you three years to sell your old home and reclaim the surcharge. This is plenty of time for most circumstances, including challenging property markets.

Timeline Illustration

1 March 2026: Complete purchase of new home (£400,000)

Pay £19,500 SDLT (including 3% surcharge)

15 September 2027: Sell old home (18 months later)

Within 36-month window ✓

By 15 September 2028: Claim refund (within 12 months of sale)

Receive £12,000 refund of 3% surcharge

What Counts as Main Residence?

For the refund to apply, both properties must qualify as main residences:

You lived in the old property as your only or main home
The new property becomes your only or main home
Investment properties, second homes, or holiday homes don't qualify

Bridge Finance and Timing

Bridging loans allow you to purchase a new property before selling your old one. They're commonly used to avoid chain dependency and secure a property quickly.

Stamp Duty Implications

Using a bridge loan doesn't change the stamp duty rules:

You'll own two properties when the new purchase completes
You pay the 3% surcharge initially
Once you sell the old property (using bridge loan proceeds), you can reclaim the surcharge
The 36-month window applies from the date you bought the new property

Example: Bridge Loan Scenario

Situation: You find your ideal home but haven't sold your current property yet

Bridge loan: £200,000 for 6 months

New property: £500,000

Initial SDLT:

£0 - £250,000: 3% = £7,500
£250,001 - £500,000: 8% = £20,000
Total: £27,500

After selling old home (4 months later):

Reclaim £15,000 surcharge

Final SDLT: £12,500 (standard rates)

Timing Strategies

You have three main timing options when moving home:

1. Sell First, Buy Second

Pros: No surcharge, clean transaction
Cons: May need temporary accommodation, risk losing dream property

2. Buy and Sell Simultaneously

Pros: No surcharge, no temporary accommodation
Cons: Dependent on chain, high coordination stress

3. Buy First (Bridge Finance)

Pros: Secure new property, flexibility on sale
Cons: 3% surcharge upfront (refundable), bridge loan costs

Chain Breaks and Delayed Sales

Property chains are fragile. Understanding stamp duty implications when chains break or sales are delayed is crucial.

Scenario 1: Chain Breaks Before Completion

If your sale falls through before you complete on the new purchase:

You still own your old property at completion of the new purchase
You pay the 3% surcharge
Once you eventually sell the old property (within 36 months), you can claim a refund

Scenario 2: Can't Complete on New Purchase

If the chain breaks and you can't proceed with your purchase:

No completion means no stamp duty liability
You may lose your deposit, but SDLT is only due on completion

Scenario 3: Delayed Sale (Market Downturn)

If you buy your new home but struggle to sell the old one in a slow market:

You have 36 months from the new purchase date to sell the old property
If you sell within 36 months, you get the full surcharge refund
If you take longer than 36 months, the surcharge becomes permanent
Consider renting out the old property temporarily (you still get the refund if it was previously your main residence and you sell within 36 months)

Important:

If you can't sell within 36 months, the 3% surcharge is not refundable. In extreme market conditions, this can be a significant financial burden. Consider professional advice before committing to a purchase if your old property is proving difficult to sell.

How to Claim a Surcharge Refund

Once you've sold your old main residence within 36 months of purchasing your new one, you can claim a refund of the 3% surcharge.

Claiming Process

Wait for sale to complete: You can only claim once the old property sale has legally completed
Gather documentation: You'll need the SDLT reference from your new purchase and completion statement from the old property sale
File an amended SDLT return: Your solicitor can do this, or you can use HMRC's online service
Submit within 12 months: You must claim within 12 months of selling the old property

Time Limits:

36 months to sell + 12 months to claim = up to 48 months total from the new purchase. Don't miss the 12-month claim deadline after selling, or you'll forfeit the refund.

Refund Timeframe

HMRC typically processes refunds within:

Online claims: 10-15 working days
Paper claims: 4-6 weeks
Complex cases may take longer if HMRC requests additional evidence

Practical Timeline Examples

Example 1: Smooth Move with Bridge Loan

1 Feb 2026: Exchange on new property (£450,000)

1 Mar 2026: Complete purchase, take bridge loan

Pay SDLT: £0-£250k at 3% (£7,500) + £250k-£450k at 8% (£16,000) = £23,500

15 May 2026: Sell old property (10 weeks later)

June 2026: Claim refund of £12,000 (3% surcharge portion)

Final SDLT: £11,500 (standard rates)

Example 2: Delayed Sale in Tough Market

10 Jan 2026: Complete purchase of new home (£350,000)

Pay SDLT with surcharge: £15,500

Jan-Dec 2026: Old property on market, no offers

15 Aug 2027: Finally sell old property (19 months later)

Within 36-month window ✓

Sep 2027: Claim refund of £10,500

Final SDLT: £5,000 (standard rates)

Example 3: Sold First (No Surcharge)

1 May 2026: Sell old property, move to rented accommodation

1 Aug 2026: Complete purchase of new home (£400,000)

Only one property owned at completion

SDLT: £7,500 (standard rates, no surcharge)

Common Questions

Can I avoid the surcharge by transferring the old property to a family member?

HMRC anti-avoidance rules prevent this. Transferring ownership to a spouse or family member just before purchasing your new home will still trigger the surcharge. The property must be genuinely sold to a third party.

What if I rent out my old property instead of selling it?

You can rent out the old property temporarily while marketing it for sale. As long as it was your main residence when you bought the new property, and you sell it within 36 months, you still qualify for the surcharge refund.

Does exchanging contracts count, or only completion?

Only completion matters for stamp duty. You're assessed on the properties you own on the completion date of your new purchase. If you've exchanged but not completed on the sale of your old property, you still pay the surcharge (but can reclaim it once sale completes).

What if the sale falls through at the last minute?

If your sale falls through after you've completed your new purchase, you have the remaining time within the 36-month window to find a new buyer. The clock started when you bought the new property, not when you agreed the initial sale.

Can I claim the refund if I sell to a family member?

Sales to connected parties (family members, business partners) are scrutinized closely by HMRC. The sale must be at market value and genuinely arm's length. Selling below market value to family may result in the refund being denied.

Calculate Your Home Mover Stamp Duty

Use our calculator to see standard rates and the 3% surcharge side-by-side. Plan your finances and understand your refund entitlement.

Calculate Stamp Duty