Stamp duty on inherited property
Inheriting a property does not trigger SDLT. The estate transfers the property to the beneficiary outside the SDLT regime. The catch is the indirect effect: even a small inherited share counts as ownership for the additional-property surcharge and disqualifies you from first-time buyer relief.
Last reviewed 16 May 2026.
The inheritance itself is outside SDLT
A transfer of property under a will or the rules of intestacy is not a "land transaction" for SDLT purposes. No SDLT is due, no return is filed. Inheritance Tax may be a separate issue - handled at the estate level by the executors, but that is a different tax altogether.
The same applies to a "deed of variation" used to redirect inherited property to someone else within two years of death. The variation is treated as if the original deceased had made the gift directly, so SDLT does not arise.
The indirect consequences
First-time buyer relief is lost
The FTB definition requires that you have never owned a freehold or leasehold interest in any residential property anywhere in the world. Inheriting a share, even a tiny share of a family home, even for a brief period, means you have owned a residential property. The relief is no longer available, regardless of whether you still hold the share.
The additional-property surcharge
If you inherit a share of a residential property worth more than £40,000 (in your share, not in total) and you buy another residential property within three years of the inheritance, the 5% surcharge applies to your new purchase. The three-year window is specific to inheritance: after three years, a small inherited share of less than 50% is ignored for surcharge purposes.
The relief is narrow:
- only applies to interests inherited (not bought)
- your inherited share must be 50% or less
- the new home you buy must be your main residence
- your spouse or civil partner must not separately own a 50%-plus interest in the same inherited property
If you buy out a co-beneficiary
Where multiple people inherit a property and one of them buys out the others, the buyer pays SDLT on the consideration paid to the others (their share of the property's value, plus any related debt taken on). The portion the buyer already owns is not chargeable.
Example: three siblings inherit a property worth £600,000. One buys out the other two for £200,000 each (total £400,000). SDLT is calculated on £400,000, the standard rate applies unless surcharge conditions are met.
Selling an inherited property
The sale of an inherited property carries no SDLT, SDLT is paid by the buyer. The selling estate (or beneficiary) may owe capital gains tax on any increase in value between the date of death and the sale, but that is a separate question.