Stamp duty on gifts and inherited property
Gifts and inheritance
A genuine gift of property is normally exempt from SDLT if you give nothing in return.
- Inheritance under a will or intestacy can be exempt.
- Money, debt or another benefit can change the answer.
- The legal documents and full facts matter.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty on gifts and inherited property
You will usually not pay stamp duty land tax on a genuine gift of property. The key question is simple: did you give anything in return? That can include more than cash.
What this rule is about
Stamp duty land tax, often called SDLT or stamp duty, can apply when land changes hands. Even when property passes through a will, a trust or by operation of law rather than through an ordinary sale, the transfer may still count for SDLT purposes. That alone is not decisive.
Where the recipient gives no payment or other value for a transfer, even though the land has changed hands, the law exempts the transfer from SDLT. The transfer is exempt.
What the official source says
HMRC’s manual says that gifts, inheritances and most transfers that happen by operation of law are not chargeable. This follows the exemption for a land transfer without chargeable consideration, meaning, in ordinary language, that nothing is given in return.
- A gift can be exempt if the recipient gives nothing for it.
- Property passing under a will can be exempt.
- Property passing under intestacy rules can be exempt.
- A trust beneficiary can be exempt if property passes under the terms of the trust.
What this means in practice
Calling it a gift proves nothing. What you actually give is what matters. Money, a promise or another benefit may change the result.
- Keep the documents that show why the property passed to you.
- Check whether you paid any sum connected with the transfer.
- Check whether you took on a debt secured on the property.
How to analyse it
Facts come before paperwork labels. Ask these questions in order:
- How did the property pass to you?
- Was it a gift, inheritance, trust transfer or legal transfer?
- Did you give cash or anything else of value?
- Was there a secured debt on the property?
Example
Asha inherits her aunt’s house under the aunt’s will. Asha pays nothing for it. On those facts, the inheritance is exempt from SDLT. If Asha also agrees to give money for the house, the position needs checking because it may no longer be a no-payment transfer.
Why this can be difficult in practice
This is the part people get wrong: a transfer can be a gift in everyday language but still involve a payment for SDLT purposes. The paperwork and any linked arrangements matter.
- A mortgage or secured debt may affect the answer.
- A payment made outside the transfer document can still matter.
- Trust terms must be read carefully to see why property passed.
Key takeaways
- A genuine no-payment gift is normally exempt.
- Inheritance can be exempt under its own rule.
- Check for money, debt or another benefit before assuming no SDLT is due.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 section 43 — transactions include transfers made by operation of law
- FA 2003 section 49 — exempt transactions are outside the SDLT charge
- FA 2003 Schedule 3 para 1 — gifts are exempt where nothing is given
- FA 2003 Schedule 3 para 3A — inheritances are exempt subject to payment exceptions
- FA 2003 Schedule 4 para 1 — what counts as payment for a land transfer
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- Whether something of value has been given can be fact-sensitive, especially where a mortgage, debt, payment or linked arrangement is involved.
- The supplied statutory text is current only to 17 November 2025. A transfer after that date needs current-law verification.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The transfer deed, will, trust terms or legal documents explaining why the property passed.
- Evidence of any money paid, debt taken on or other benefit given by the recipient.
- Details of any mortgage or other debt secured on the property.
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION Stamp duty on gifts and inherited property [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 section 43 - transactions include transfers made by operation of law https://www.legislation.gov.uk/ukpga/2003/14/section/43/2025-11-17 - FA 2003 section 49 - exempt transactions are outside the SDLT charge https://www.legislation.gov.uk/ukpga/2003/14/section/49/2025-11-17 - FA 2003 Schedule 3 para 1 - gifts are exempt where nothing is given https://www.legislation.gov.uk/ukpga/2003/14/schedule/3/paragraph/1/2025-11-17 - FA 2003 Schedule 3 para 3A - inheritances are exempt subject to payment exceptions https://www.legislation.gov.uk/ukpga/2003/14/schedule/3/paragraph/3A/2025-11-17 - FA 2003 Schedule 4 para 1 - what counts as payment for a land transfer https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/1/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00530 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - Whether something of value has been given can be fact-sensitive, especially where a mortgage, debt, payment or linked arrangement is involved. - The supplied statutory text is current only to 17 November 2025. A transfer after that date needs current-law verification. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 1 September 2026
Useful article? You may find it helpful to read the original guidance here: Stamp duty on gifts and inherited property
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