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
  • charities buying for charitable purposes
  • right to buy properties
  • registered social landlords
  • Crown employees
  • property investment funds, for example Property Authorised Investment Funds (PAIFs) and Co-ownership Authorised Contractual Schemes (CoACSs)

You can also read guidance on freeport tax sites.

Exemptions

You do not 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 threshold or non-residential threshold of SDLT
  • you use alternative property financial arrangements, for example to comply with Sharia law

Read HMRC’s guidance on transactions that do not need a return.