Stamp Duty Refund Calculation Examples: Worked Scenarios
Detailed worked examples showing exactly how stamp duty refund amounts are calculated, with band-by-band breakdowns for properties from £300,000 to £1,000,000.
Key Takeaways
- The higher rate refund is always 5% of the full purchase price, as the surcharge applies to the entire property value
- Band-by-band calculations show the difference between higher rate SDLT and standard rate SDLT at each price band
- A £300,000 property generates a £15,000 refund. A £1,000,000 property generates a £50,000 refund
- Non-resident refunds are calculated differently: the 2% non-resident surcharge is refunded if you meet UK residence requirements within 2 years
- First-time buyers who were wrongly charged standard rates can claim back the FTB relief difference through an amendment
- Post-April 2025 SDLT rates apply to all examples: 0%, 2%, 5%, 10%, and 12% standard bands before surcharge
- The refund calculation does not change regardless of whether you submit online or by post
- Always use your completion date (not exchange date) to calculate which rate table applies to your purchase
In this article
How Stamp Duty Refunds Are Calculated
The higher rate (additional property) refund is calculated as the difference between what you paid with the 5% surcharge and what you would have paid at standard rates. Because SDLT uses a banded system, you cannot simply multiply 5% by the purchase price to get the refund. However, for the additional property surcharge specifically, the result is always exactly 5% of the purchase price, because the surcharge adds 5% to every band.
The Simple Formula
For the higher rate refund: Refund = 5% x Full Purchase Price
For a £400,000 property: 5% x £400,000 = £20,000 refund
The band-by-band breakdown below confirms this, but the shortcut always applies to the higher rate refund because the surcharge is a flat additional 5% across all bands.
All examples below use SDLT rates applicable from April 2025 onwards. See current stamp duty rates 2026 for the full rate tables. For the claim process, see our step-by-step refund claim guide.
Example 1: £300,000 Property (Standard Buyer Replacing Main Home)
Step 1: What James Paid (Higher Rate)
| Band | Amount in Band | Higher Rate | SDLT |
|---|---|---|---|
| £0 to £250,000 | £250,000 | 5% | £12,500 |
| £250,001 to £925,000 | £50,000 | 10% | £5,000 |
| Total SDLT Paid | £17,500 | ||
Step 2: What He Should Have Paid (Standard Rate)
| Band | Amount in Band | Standard Rate | SDLT |
|---|---|---|---|
| £0 to £250,000 | £250,000 | 0% | £0 |
| £250,001 to £925,000 | £50,000 | 5% | £2,500 |
| Total SDLT Without Surcharge | £2,500 | ||
Example 2: £500,000 Property (Full Band-by-Band Breakdown)
Step 1: What Sarah Paid (Higher Rate)
| Band | Amount in Band | Higher Rate | SDLT |
|---|---|---|---|
| £0 to £250,000 | £250,000 | 5% | £12,500 |
| £250,001 to £500,000 | £250,000 | 10% | £25,000 |
| Total SDLT Paid (Higher Rate) | £37,500 | ||
Step 2: What She Should Have Paid (Standard Rate)
| Band | Amount in Band | Standard Rate | SDLT |
|---|---|---|---|
| £0 to £250,000 | £250,000 | 0% | £0 |
| £250,001 to £500,000 | £250,000 | 5% | £12,500 |
| Total SDLT (Standard Rate) | £12,500 | ||
Verification: 5% x £500,000 = £25,000. The band-by-band method and the simple 5% formula always agree for the higher rate refund.
Example 3: £750,000 Property
Higher Rate SDLT Paid
Standard Rate SDLT
Verification: 5% x £750,000 = £37,500
Example 4: £1,000,000 Property
| Band | Amount | Higher Rate | SDLT Paid | Standard Rate | Standard SDLT |
|---|---|---|---|---|---|
| £0 to £250,000 | £250,000 | 5% | £12,500 | 0% | £0 |
| £250,001 to £925,000 | £675,000 | 10% | £67,500 | 5% | £33,750 |
| £925,001 to £1,000,000 | £75,000 | 17% | £12,750 | 12% | £9,000 |
| Totals | £92,750 | £42,750 | |||
Verification: 5% x £1,000,000 = £50,000
Example 5: Non-Resident Refund (2% Surcharge)
Non-Resident Refund: Different Rules
The non-resident surcharge refund works differently from the higher rate refund. It applies to the 2% non-resident surcharge only. To qualify, you must have spent 183 or more days in the UK in any continuous 12-month period within 2 years of the purchase completion date. The claim deadline is also 2 years from purchase, not 12 months.
What Liu Paid (with 2% non-resident surcharge)
Standard SDLT Without Non-Resident Surcharge
Verification: 2% x £400,000 = £8,000 (the 2% non-resident surcharge)
Note: If Liu also bought while owning another property (and she did not sell it within 36 months), the higher rate surcharge would also apply and could potentially also be refunded. Complex situations like this require professional advice.
Example 6: First-Time Buyer Wrongly Charged Standard Rates
FTB Overpayment: Different Claim Type
This is an overpayment refund due to an incorrect calculation, not the higher rate refund. The time limit is different: Emma has 12 months from the date of her original SDLT return to file an amendment. This is separate from the 12-month post-sale deadline for higher rate refunds.
What Emma Was Charged (Standard Rates)
What She Should Have Paid (FTB Relief)
Summary Comparison Table
The table below summarises all six examples and the higher rate refund at a glance for common purchase prices. Use our second home calculator for an instant calculation at any price point.
| Example | Purchase Price | SDLT Paid | SDLT Without Surcharge | Refund |
|---|---|---|---|---|
| 1. James (standard higher rate) | £300,000 | £17,500 | £2,500 | £15,000 |
| 2. Sarah (higher rate) | £500,000 | £37,500 | £12,500 | £25,000 |
| 3. David (higher rate) | £750,000 | £62,500 | £25,000 | £37,500 |
| 4. Rachel (higher rate) | £1,000,000 | £92,750 | £42,750 | £50,000 |
| 5. Liu (non-resident 2%) | £400,000 | £15,500 | £7,500 | £8,000 |
| 6. Emma (FTB overpayment) | £425,000 | £8,750 | £0 | £8,750 |
Calculate Your Refund
Enter your property price and refund type to calculate the exact refund amount for your situation.
Amount Paid
£20,000
Correct Amount
£5,000
Refund Due
£15,000
Frequently Asked Questions
Is the higher rate refund always exactly 5% of the purchase price?
Yes, for the higher rate (additional property) refund. The 5% surcharge applies uniformly across all bands, so the difference between higher rate and standard rate SDLT is always 5% of the full purchase price. This makes the calculation straightforward once you know your purchase price.
Are the calculations different for Scotland or Wales?
Yes. Scotland uses LBTT with the Additional Dwelling Supplement (ADS) at 8%, and the bands are different. Wales uses LTT with its own higher rates structure. The worked examples above apply to English (and Northern Irish) SDLT. Use the relevant calculator for Scottish or Welsh properties.
What SDLT rate bands apply in 2026?
The current (post-April 2025) standard SDLT bands are: 0% up to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1,500,000, and 12% above £1,500,000. Higher rate SDLT adds 5% to each band. See current stamp duty rates 2026 for the complete tables.
How do I submit my refund claim once I know the amount?
See our step-by-step refund claim process guide for full instructions. You will need your UTRN, completion statements for both properties, and your bank details. Online submission through HMRC is fastest at 4-6 weeks. You must also have met the 36-month deadline for selling your previous home.
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Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.
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