6. Reliefs and exemptions
You may be eligible for Stamp Duty Land Tax (SDLT) reliefs if you’re buying your first home and in certain other situations. These reliefs can reduce the amount of tax you pay.
You must complete an SDLT return to claim relief, even if no tax is due.
HM Revenue and Customs (HMRC) has guidance on SDLT reliefs for:
- first-time buyers
- multiple dwellings
- building companies buying an individual’s home
- employers buying an employee’s house
- local authorities making compulsory purchases
- property developers providing amenities to communities
- companies transferring property to another company
- right to buy properties
- registered social landlords
You don’t have to pay SDLT or file a return if:
- no money or other payment changes hands for a land or property transfer
- property is left to you in a will
- property is transferred because of divorce or dissolution of a civil partnership
- you buy a freehold property for less than £40,000
- you buy a new or assigned lease of 7 years or more, as long as the premium is less than £40,000 and the annual rent is less than £1,000
- you buy a new or assigned lease of less than 7 years, as long as the amount you pay is less than the residential or non-residential SDLT threshold
- you use alternative property financial arrangements, eg to comply with Sharia law
Read HMRC’s guidance on transactions that don’t need a return.