Stamp Duty Exemptions & Refunds 2026 - When You Don't Pay

Q: What properties are exempt from stamp duty?

HMRC lists the cases where you pay no SDLT and file no return: no money or other payment changes hands (a gift, or a transfer to a spouse with no payment and no mortgage taken over); property left to you in a will; a transfer because of divorce or dissolution of a civil partnership; a freehold bought for less than £40,000; a lease of 7 years or more with a premium under £40,000 and annual rent under £1,000; and alternative property finance where the provider pays SDLT on its own purchase. Separate reliefs, claimed on the SDLT return, cover first-time buyers, charities, group transfers, right to buy and registered providers of social housing.

Q: Can you claim stamp duty back?

Yes, in specific circumstances. If you paid the 5% higher rates because you bought a new main residence before selling your previous one, you can reclaim if you sell the old home within 3 years; claim within 12 months of that sale or of the new return's filing date, whichever is later. Non-UK residents can reclaim the 2% surcharge if they spend 183 days in the UK in any continuous 365-day period between 364 days before and 365 days after the purchase; claim within 2 years of the purchase date. Both claims use HMRC's online forms.

Q: Is stamp duty payable on transfer in divorce?

HMRC lists a property transfer made because of divorce or the dissolution of a civil partnership as a case where no SDLT is paid and no return is filed. The exemption covers transfers under a court order or an agreement made in connection with the divorce, separation or dissolution, and applies even if a mortgage moves with the property.

Every SDLT exemption, relief and refund scenario explained with eligibility criteria and claim processes.

When is stamp duty not payable?

In England and Northern Ireland, HMRC says you pay no Stamp Duty Land Tax and file no return when:

no money or other payment changes hands (a gift with no mortgage taken over)
the property is left to you in a will
the property is transferred because of divorce or the dissolution of a civil partnership
you buy a freehold for less than £40,000
you buy a lease of 7 years or more with a premium under £40,000 and annual rent under £1,000
you use alternative property finance (for example Sharia-compliant) where the provider pays SDLT on its own purchase

Source: GOV.UK, Stamp Duty Land Tax: reliefs and exemptions, read 5 November 2026. Anything else is either chargeable or needs a relief claimed on the return (below). Scotland (LBTT) and Wales (LTT) have their own rules: see Scotland and Wales.

Stamp Duty Exemptions Explained

Transfers on divorce or dissolution

A transfer because of divorce or the dissolution of a civil partnership needs no SDLT and no return. It covers transfers under a court order (including a consent order) or an agreement made in connection with the divorce, separation or dissolution, and applies even if a mortgage moves with the property.

Transfers between spouses or civil partners (no consideration)

If you transfer property to your spouse or civil partner and they pay nothing for it (no cash payment, no assumption of mortgage debt), no SDLT is due. If they take over a mortgage, that counts as chargeable consideration and SDLT may apply on the mortgage value.

Inherited property

Receiving property through a will or intestacy does not attract SDLT. The inheritance itself is not a purchase. However, if a beneficiary purchases another beneficiary's share of an inherited property, SDLT may apply to that transaction.

Freeholds under £40,000 and small leases

A freehold bought for less than £40,000 needs no SDLT and no return. For a lease of 7 years or more the test is a premium under £40,000 and annual rent under £1,000; for a lease under 7 years, what you pay must be below the residential or non-residential nil-rate threshold. The 5% higher rates also never apply to a property worth less than £40,000.

Caravans, mobile homes and houseboats

A caravan, houseboat or mobile home that can be moved is not land, so buying the structure itself is outside SDLT. HMRC's higher-rates guidance excludes moveable homes unless one has become a permanent fixture, and any land or pitch bought with it is assessed separately.

Alternative property finance

Where you use an alternative finance arrangement (for example to comply with Sharia law) and the finance provider pays SDLT when it buys the property, HMRC lists this among the cases needing no SDLT or return.

Charities

Qualifying charities can claim relief from SDLT when purchasing property for charitable purposes. The relief must be claimed on the SDLT return and requires evidence of charitable status.

Registered social landlords

Registered providers of social housing purchasing property can claim relief from SDLT, subject to conditions about use for social housing purposes.

Relief Schemes

First-Time Buyer Relief

0% on properties up to £300,000; 5% on £300,001-£500,000. No relief above £500,000. All buyers must be FTBs.

Full guide →

Multiple Dwellings Relief: ABOLISHED

MDR was abolished on 1 June 2024. Previously allowed portfolio landlords to average SDLT across multiple units. No longer available for any transactions from June 2024 onwards.

Corporate Group Relief

Companies within the same group (75% common ownership) can transfer property between group members without incurring SDLT. Clawback applies if the group relationship ends within 3 years.

When You Can Claim a Refund

5% surcharge refund (sold previous main residence)

If you paid the 5% additional property surcharge because you bought a new main residence before selling your previous one, you can claim a refund if you sell the previous home within 3 years of buying the new one.

How to claim: HMRC's online repayment form. Apply within 12 months of selling the previous home, or within 12 months of the filing date of the new property's SDLT return, whichever is later. Provide details of both transactions.

2% surcharge refund (became UK resident)

Non-UK residents who spend 183 days in the UK in any continuous 365-day period inside the two years that start 364 days before the purchase date and end 365 days after it can claim back the 2% non-resident surcharge. Every buyer must be an individual.

How to claim: HMRC's online repayment form. Apply within 2 years of the purchase date (the effective date of the transaction).

How to Claim a Refund

Identify the qualifying event (sold previous main residence, became UK resident, etc.)

Complete HMRC's online repayment form for the surcharge you are reclaiming

Provide supporting evidence: completion statements for both properties, proof of dates, etc.

Submit within the time limit: 12 months from the sale of the old home or the new return's filing date (whichever is later) for the 5% surcharge; 2 years from the purchase date for the 2% surcharge

Common Misconceptions

MYTHI am a first-time buyer at £525,000 - I am exempt

FACTFirst-time buyer relief only applies to properties up to £500,000. Above this, standard rates apply to the full amount with no relief whatsoever.

MYTHNew build properties are exempt from stamp duty

FACTThere is no general stamp duty exemption for new builds. The same rates apply as for any residential purchase. Some house builders offer to pay buyers' stamp duty as an incentive, but this is a commercial arrangement, not an exemption.

MYTHI sold my house before buying this one, so no surcharge applies

FACTThe surcharge does not apply if you are replacing your main residence. However, timing matters. If you have not sold your previous property at the point of completion on the new one, the surcharge applies (though you can reclaim it once you sell within 3 years).

MYTHStamp duty is optional if the lender does not require it

FACTSDLT is a legal obligation. It must be paid within 14 days of completion regardless of what your lender requires. Failure to pay results in penalties, interest, and HMRC investigation.

FAQs

What properties are exempt from stamp duty?

HMRC's list of cases with no SDLT and no return: no money or other payment changes hands; property left to you in a will; a transfer because of divorce or dissolution; a freehold bought for less than £40,000; a lease of 7 years or more with a premium under £40,000 and rent under £1,000; and alternative property finance where the provider has paid SDLT. Reliefs such as first-time buyer, charities and group relief are claimed on the return instead. Most ordinary purchases fall outside all of these.

Can you claim stamp duty back?

Yes, in specific circumstances. The most common refund is the 5% higher-rates refund when you sell your previous main residence within 3 years of buying the new one. Apply within 12 months of the sale or of the new return's filing date, whichever is later. Non-UK residents can reclaim the 2% surcharge after spending 183 days in the UK in a continuous 365-day period around the purchase, applying within 2 years of the purchase date. See the HMRC stamp duty refund guide for worked examples.

Do you pay stamp duty on inherited property?

No SDLT is payable on property received through a will or intestacy - the inheritance itself is not a chargeable transaction. However, owning inherited property may affect your status as a first-time buyer and may trigger the additional property surcharge if you later buy another property. See the first-time buyer guide for details on how inheritance affects relief eligibility.

Is stamp duty payable on transfer in divorce?

Transfers of property between separating or divorcing spouses or civil partners made under a court order or an agreement in connection with the divorce, separation or dissolution are exempt from SDLT. This applies even if there is a mortgage on the property that is being transferred. No SDLT return is required for qualifying divorce transfers, though your solicitor should retain evidence of the court order.

Calculate Your Duty First-Time Buyer Second Home How to Pay Non-UK Resident