Stamp Duty Exemptions and Reliefs: Are You Eligible?

When purchasing property, Stamp Duty Land Tax (SDLT) can represent a significant additional cost. However, many buyers are unaware that there are a range of stamp duty exemptions and reliefs that could reduce or even eliminate their SDLT bill altogether.

At SCA Tax, we specialise in assessing property transactions to determine if buyers have overpaid stamp duty, and in many cases, our clients discover they were eligible for reliefs they didn’t even know existed.

In this article, we’ll break down the most common SDLT exemptions and reliefs, who qualifies, and how you can find out if you’re eligible.

What Is Stamp Duty Land Tax?

SDLT is a tax you usually pay when you buy property or land. The rate varies depending on the price of the property, whether it’s residential or commercial, and your individual circumstances, like whether you’re a first-time buyer or already own other properties.

What’s often overlooked is that there are several reliefs and exemptions built into the legislation. These can reduce your SDLT bill, sometimes significantly, but they’re not always flagged at the time of purchase.

Common Stamp Duty Reliefs and Exemptions

1. First-Time Buyer Relief (Updated April 2025)

If you're buying your first home, good news - you could pay less (or no) stamp duty at all.

As of 1 April 2025, the rules for first-time buyer relief are:

• 0% SDLT on the first £300,000 of the purchase price
• 5% SDLT on the portion between £300,001 and £500,000

If the property costs more than £500,000, unfortunately, this relief doesn’t apply and standard rates kick in.

It’s a great saving, but one that some buyers miss out on if their solicitor doesn’t apply the right relief at the time.

2. Probate / Deceased Estate Relief

In some cases, properties sold by the executor or administrator of a deceased estate may qualify for SDLT relief or partial exemption. The circumstances vary depending on the type of transaction and whether the property was transferred as part of the administration of the estate.

This is a niche area where legal advice or a specialist assessment can help determine if the right amount of SDLT was paid, or if a refund may be due.

3. Multiple Dwellings Relief (MDR)

If you bought a property that includes more than one self-contained dwelling, for example a house with a granny annex or a block of flats, you might be eligible for MDR.

Instead of paying stamp duty based on the total price, MDR lets you calculate it based on the average price of each dwelling, which can reduce the tax quite a bit.

This is one of the most common reliefs we help clients claim, and the refunds can be significant.

4. Mixed-Use Property Relief

If the property includes both residential and non-residential elements, like a flat above a shop or land used for farming, it may qualify as “mixed-use.” This means commercial stamp duty rates apply, which are generally lower than residential rates.

It’s a little-known distinction that can make a big difference to the amount of SDLT you owe.

5. Chain Break Concession Relief

This lesser-known relief can apply when a homebuilder or developer buys a property from someone struggling to sell, in order to keep a property chain moving. Known as the Chain Break Concession, it’s designed to support continuity in the housing market.

While it’s typically applied to developers, buyers in certain scenarios may still benefit, and this is one of those areas where mistakes are often made.

Why Are These Reliefs So Often Missed?

Stamp duty law is notoriously complex, and many of the reliefs are buried in technical language. Even experienced solicitors sometimes miss opportunities for relief, especially in more unusual property purchases.

We often see missed claims in cases involving:

• Homes with annexes or outbuildings
• Land or agricultural property
• Mixed-use buildings
• Multiple dwellings under one transaction

Think You’ve Overpaid? You Might Be Owed a Refund

If you’ve bought a property in the last four years, you might be able to claim back overpaid SDLT. And the process doesn’t have to be difficult.

At SCA Tax, we offer a free assessment to see if you could be eligible for a refund. Our team will review your case and if there’s a claim to be made, we’ll handle the paperwork and work with HMRC on your behalf. No upfront costs, no hidden fees.

Quick Ways to Check If You’re Eligible

• Use our free Stamp Duty Checker to see if you might qualify for a refund
• Or speak to one of our team for a friendly, no-pressure review

Don’t Pay More Than You Have To

If you’ve already paid stamp duty. especially on a property with land, extra buildings, or multiple units, it’s worth checking whether you were charged the right amount.

You could be owed thousands. Let us help you find out.

Check Your Eligibility Now, or give us a call for a no-obligation chat on 0161 669 6731.