Stamp Duty Land Tax

6. Reliefs and exemptions

You may be eligible for Stamp Duty Land Tax (SDLT) reliefs in certain 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:

Exemptions

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.