SDLT reliefs and exemptions

An SDLT relief reduces or removes the tax on a transaction that would otherwise be taxable, and it has to be claimed on an SDLT return using the right relief code. An exemption means the transaction is outside the tax altogether, so no tax is due and, in many cases, no return is needed either.

Both depend on the facts of the transaction. A relief claimed wrongly can be withdrawn by HMRC, with the tax, interest and penalties then payable.

First-time buyer relief is the most widely used SDLT relief. It reduces the tax on a first home bought as a main residence, as long as every buyer has never owned a home anywhere and the price is below the cap. It is claimed on the SDLT return, usually by the conveyancer.

The rules on who counts as a first-time buyer, joint purchases and shared ownership are covered in the guide to first-time buyer stamp duty.

A transfer of property with no chargeable consideration, such as an outright gift of a home with no mortgage, is exempt from stamp duty. Property passed on under a will is also exempt. The exemption is lost if the person receiving the property takes over a mortgage or pays anything for it.

Taking over a share of a mortgage counts as payment. A gift of a share in a mortgaged home can therefore be taxable even though no money changes hands.

A transfer of equity adds or removes an owner. It is taxable only if there is chargeable consideration, such as money paid or a share of the mortgage taken on, and the tax is worked out on that amount. Many transfers between partners fall below the threshold or are exempt altogether.

Transfers between spouses or civil partners under a court order or agreement made on divorce, dissolution or separation are exempt. Transfers between couples who are not married have no equivalent exemption.

Shared ownership and right to buy purchases have special rules. Shared owners can choose to pay on the full market value at the start or in stages as they buy more shares, and right to buy purchases are taxed on the discounted price paid rather than the full value. Both can affect whether other reliefs apply.

The choice made by a shared owner on the first return is hard to change later, so it is worth understanding before completion.

Several reliefs apply to companies, charities and public bodies. Group relief covers transfers between companies in the same group, charities relief covers purchases used for charitable purposes, and other reliefs cover reconstructions, public bodies and some property rental businesses. Each has conditions and anti-avoidance rules that can withdraw the relief later.

Purchases of six or more homes in one transaction can be taxed at non-residential rates instead of residential ones.

Multiple dwellings relief, which reduced the tax on a purchase of two or more homes in one transaction, was abolished for transactions completing on or after 1 June 2024 (GOV.UK, accessed 20 Oct 2026). Temporary increases to the nil-rate band and first-time buyer thresholds also ended on 1 April 2025.

Claims for relief that has ended can still be made only for purchases that completed while it applied, within the time limits for amending a return.