Stamp duty when you inherit a property (UK, 2026)
There's no stamp duty on inheritance itself — that's covered by inheritance tax. But an inherited share can change the SDLT treatment of your next purchase, sometimes triggering the 5% additional-property surcharge unexpectedly. Here's how the rules actually work.
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HMRC · 2026How the working reads
Indicative — final stamp duty depends on the exact completion date and the tax authority's published rules at that date. Always confirm with your conveyancer. Figures based on rules in force 2026.
Inheritance itself: no SDLT
When you inherit a property — solely, jointly with siblings, or as a beneficiary of a trust — there is no stamp duty event. The transfer happens via probate or trust mechanics, not via a sale, and there's no chargeable consideration. The relevant tax on the inheritance itself is Inheritance Tax (IHT), payable by the estate before distribution.
What inheritance can do, though, is mess with the SDLT treatment of your next purchase.
The "major interest" test
For SDLT purposes, holding a "major interest" in another residential property at completion of your new purchase triggers the 5% additional-property surcharge in England (8% ADS in Scotland; equivalent in Wales). A major interest is broadly:
- Any beneficial share worth £40,000 or more in residential property
- Including freehold, leasehold and joint ownership
- Including shares held via inheritance — the property doesn't need to be in your sole name
So if you've inherited a 50% share in a £200,000 family home, that share (worth £100,000) makes any subsequent purchase an additional-property purchase — even if it's intended as your main home.
The 36-month main-home replacement rule
There's relief if your next purchase replaces an existing main residence. If you sell your old main home within 36 months of completing the new one, you can claim back the surcharge. Inherited shares complicate this — the inherited property must have been your main residence at some point in the qualifying window. Sites like gov.uk publish the technical guidance, but in practice most buyers in this position need a property tax specialist to advise.
Buying out a co-heir
If you're paying another beneficiary for their share — common when one sibling wants to keep the family home — SDLT is charged on the chargeable consideration: the cash paid plus your share of any mortgage taken over.
| Scenario | Chargeable consideration | SDLT (main home) | SDLT (additional) |
|---|---|---|---|
| Buy out 50% of £200k home, no mortgage | £100,000 | £0 | £5,000 |
| Buy out 50% of £400k home, no mortgage | £200,000 | £1,500 | £11,500 |
| Buy out 50% of £600k home, £200k mortgage assumed | £400,000 | £10,000 | £30,000 |
| Buy out 33% of £900k home, £150k mortgage assumed | £350,000 | £7,500 | £25,000 |
The status of the buyout (main home vs additional) depends on whether you'll live there as your main residence and whether you own other property. Use the calculator above with your specific buyout sum.
First-time buyer relief — gone for good
This is the hardest rule to swallow. Any prior major-interest ownership disqualifies you from first-time buyer relief, anywhere in the world, ever. So:
- Inherited a half-share of a parental home in 2018
- Sold the share back to your sibling in 2019
- Buying your first independent purchase in 2026
Despite never having "bought" a home, you are not a first-time buyer for SDLT purposes. The relief is lost.
This catches a lot of people in their twenties and thirties whose family homes were transferred during a parent's life-event in the prior decade.
Where Offrly fits
When you're dealing with an inherited property, you'll need a defensible value figure for HMRC (probate value affects IHT) and for any sibling buyout. Offrly's AI reads each comparable's photos (garden, condition, layout, finish) and hyperlocal pricing resolves prices to the street rather than the postcode — about 30 seconds, free, no email. Useful as a starting position before you commission a RICS valuation for the formal probate paperwork.
Other stamp duty calculators: £400,000 · £500,000 · £750,000 · £1m · First-time buyer · Additional property · Buy-to-let · Non-resident · Scotland (LBTT) · Wales (LTT) · Head calculator
Disclaimer: Indicative figures based on HMRC SDLT rules in force April 2026. Not tax advice. Inherited-property SDLT treatment is technical and the rules above are summary only — consult a property tax specialist for any specific situation.
Do I pay stamp duty when I inherit a house?
No. Inheritance is not a chargeable SDLT event because there's no consideration. The relevant tax on inheritance itself is Inheritance Tax (IHT), payable by the estate before assets are distributed. Stamp duty only kicks in if you later buy out another beneficiary or buy a different property while still holding the inherited interest. Source: HMRC SDLT manual, section on chargeable consideration.
If I buy out a sibling's share, what stamp duty do I pay?
SDLT is charged on the chargeable consideration — the cash you pay, plus your share of any mortgage you assume. Bought out a sibling's half-share of a £400,000 inherited home? The chargeable consideration is £200,000 (or £200,000 plus half of any mortgage outstanding). On £200,000, standard SDLT for a main home is £1,500; for an additional property it's £11,500.
Will my inherited share trigger the surcharge on my next purchase?
If you hold a 'major interest' in another residential property at completion of your new purchase, the 5% surcharge applies. A major interest is broadly any beneficial share worth £40,000+ — so a 50% share of a £100,000 family home counts. Selling or transferring the inherited share before completing your new purchase removes the trigger.
What if I inherited a share and live in the inherited property as my main home?
Tricky. You can usually still treat your next purchase as a main-home replacement — but the rules are technical. The key tests are whether you've owned the inherited share for 36+ months, whether the new property replaces the inherited one as your main residence, and the precise share percentage. Take advice from a property tax specialist before exchanging.
Does inheritance affect the first-time buyer relief?
Yes — and harshly. Inheriting any major interest in any residential property anywhere in the world disqualifies you from FTB relief on any future purchase, even if you sell the inherited share before buying. The HMRC test is whether you have ever held a major interest, not whether you currently hold one.