Key takeaways
- Transfers with no payment, such as gifts and inheritances, are exempt from SDLT, but taking on a mortgage counts as payment.
- Transfers between spouses on divorce or separation under a court order or agreement are exempt.
- If you pay the 5% surcharge but sell your previous main home within three years, you can claim the surcharge back.
- Group relief, charities relief and first-time buyer relief can reduce or remove SDLT.
- Multiple dwellings relief was abolished for purchases completing from 1 June 2024.
Not every property transaction pays Stamp Duty Land Tax (SDLT), and some pay less than the headline rates. Exemptions remove certain transactions entirely; reliefs have to be claimed on an SDLT return. This guide covers the ones most people and businesses encounter.
Exemptions: no return needed in most cases
The following are exempt and usually do not need an SDLT return:
- Gifts: transfers where no money or other consideration is given. If the recipient takes on a mortgage, the debt assumed counts as consideration, and SDLT may be due on it.
- Inheritances: property passing under a will or intestacy.
- Divorce and separation: transfers between spouses or civil partners under a court order, or an agreement made in connection with divorce, dissolution or separation.
- Variations of a will within two years of death, where no consideration is given.
- Low-value transactions: purchases below £40,000 of freehold property do not need a return.
The higher rates refund
If you buy a new main home before selling your old one, you pay the 5% surcharge for additional dwellings. You can reclaim it if you sell your previous main residence within three years of buying the new one.
- Claim within 12 months of selling the old home, or within 12 months of the filing date of the SDLT return for the new home, whichever is later.
- Claim online or by post, giving details of both purchases and the sale.
Example
Kim buys a new home for £600,000 in March 2026 before selling her old one, and pays £50,000 of SDLT including £30,000 of surcharge (5% of £600,000). She sells her old home in November 2026 and reclaims the £30,000 by November 2027.
First-time buyer relief
First-time buyers pay no SDLT on the first £300,000 of a home costing £500,000 or less, and 5% on the next £200,000. See SDLT for first-time buyers.
Business and organisational reliefs
| Relief | What it does |
|---|---|
| Group relief | Exempts transfers of property between companies in a 75% group, if not part of arrangements for the buyer to leave the group |
| Acquisition relief and reconstruction relief | Reduces or removes SDLT on certain company reorganisations and acquisitions of undertakings for shares |
| Charities relief | Exempts property bought by a charity for charitable purposes or as an investment for its purposes |
| Registered social landlords and right to buy | Reduced SDLT on certain social housing transactions |
| Alternative property finance | Ensures Sharia-compliant mortgage arrangements are not taxed twice |
| Compulsory purchase | Relief for purchases facilitating development by a compulsory purchaser |
| Sale and leaseback | Relief for the leaseback element of a sale and leaseback |
Most of these must be claimed on an SDLT return and have conditions and clawback rules.
Reliefs that no longer exist
- Multiple dwellings relief, which allowed buyers of several homes to calculate SDLT on the average price, was abolished for transactions completing on or after 1 June 2024. Buyers of six or more dwellings in one transaction can still choose non-residential rates.
- The temporary higher nil-rate bands of £250,000 (and £425,000 for first-time buyers) ended on 31 March 2025.
Tips to get it right
- Claim on time: reliefs are claimed on the SDLT return, due within 14 days of completion.
- Keep evidence, especially for the higher rates refund and first-time buyer relief.
- Watch for clawback: group relief can be withdrawn if the buyer leaves the group within three years.
- Beware schemes promising to remove SDLT through artificial arrangements; HMRC challenges them and promoters are subject to disclosure rules.
Frequently asked questions
Do you pay stamp duty on a gifted house?
Not if nothing is given in return. If the recipient takes over a mortgage, the amount of debt assumed is treated as payment and SDLT may be due.
Can I get the 5% stamp duty surcharge back?
Yes, if you bought a new main home before selling your old one and you sell the old main home within three years.
Is there stamp duty on transfers between divorcing couples?
No, if the transfer is made under a court order or agreement in connection with divorce, dissolution or separation.
Does multiple dwellings relief still exist?
No. It was abolished for transactions completing on or after 1 June 2024.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance in October 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.