Stamp Duty Land Tax Relief for Property Traders Buying from Estates

SDLT relief for property traders buying a deceased person’s home from personal representatives

A property trader may get full or partial Stamp Duty Land Tax relief when buying a dwelling from the personal representatives of someone who has died, but only if strict conditions are met. The relief usually depends on the buyer carrying on the right type of business, the deceased having lived in the property as their only or main home within two years before death, and the land not exceeding the permitted area. It can also be withdrawn later if the trader refurbishes too extensively, grants occupation rights, or allows certain people to live there.

• Full relief may apply if a property trader buys the dwelling in the course of a business that consists of buying homes from the personal representatives of deceased individuals.
• The deceased must have occupied the dwelling as their only or main residence at some point in the two years before death.
• If the land exceeds the permitted area, partial relief may still be available, with SDLT charged on part of the consideration based on market value.
• The relief can be lost after purchase if the trader spends more than the permitted amount on refurbishment, grants a lease or licence, or allows principals, employees, or connected persons to occupy the property.
• Careful checks are needed on the buyer’s business model, the deceased’s occupation history, the extent of the land, and any planned works or temporary use after completion.
• HMRC says this relief is claimed on the SDLT return using relief code 28.

Scroll down for the full analysis.

SDLT relief when a property trader buys a deceased person’s home from the personal representatives

This page explains a specific Stamp Duty Land Tax relief for property traders who buy a dwelling from the personal representatives of someone who has died. The relief can remove the SDLT charge completely, or reduce it where the land is larger than the permitted area. It is a targeted relief with strict conditions, and it can later be withdrawn if the property trader uses the property in certain ways.

What this rule is about

The rule deals with purchases of residential property by a property trader from the personal representatives of a deceased individual. In broad terms, it is aimed at traders whose business includes buying homes from estates after death.

This is not a general relief for all estate sales. It only applies where the statutory conditions are met. The source material also makes clear that some important terms, such as permitted area and permitted amount, are defined elsewhere in the SDLT legislation and guidance.

What the official source says

According to HMRC’s SDLT manual, a purchase of a dwelling by a property trader from the personal representatives of a deceased individual is exempt from SDLT if all of the following conditions are satisfied:

• the purchase is made in the course of a business that consists of purchasing dwellings from the personal representatives of deceased individuals;
• the deceased occupied the dwelling as their only or main residence at some point in the two years ending on the date of death; and
• the land acquired does not exceed the permitted area.

If the first two conditions are met but the land exceeds the permitted area, the source says partial relief may be available instead of full relief.

Where partial relief is claimed, some of the consideration remains chargeable. The amount treated as chargeable is the difference between:

• the market value of the permitted area; and
• the total market value of the dwelling including all the land.

The source also says the relief is withdrawn if the property trader:

• spends more than the permitted amount on refurbishing the dwelling;
• grants a lease or licence of the dwelling; or
• allows any of its principals or employees, or anyone connected with them, to occupy the dwelling.

HMRC states that relief under this provision is claimed on the SDLT return using relief code 28.

What this means in practice

The practical question is not simply whether the property was bought from an estate. You need to look at the buyer, the deceased’s use of the property before death, and the amount of land included in the purchase.

First, the buyer must be a property trader buying in the course of a qualifying business. The wording used in the source is narrower than a general property investment or development business. The business must consist of purchasing dwellings from the personal representatives of deceased individuals. That means the nature of the buyer’s trade matters.

Second, the dwelling must have been the deceased’s only or main residence at some point in the two years before death. The source does not require the property to have been occupied continuously up to death, but there must have been qualifying occupation within that two-year window.

Third, the size of the land matters. If the acquisition stays within the permitted area, full relief may be available. If it goes beyond that area, the relief is not necessarily lost altogether, but only part of the transaction may be relieved.

The withdrawal rules are also important. Even if relief is available when the purchase completes, later actions by the property trader can undo it. In particular, substantial refurbishment above the permitted amount, granting occupation rights, or allowing occupation by principals, employees, or connected persons can trigger withdrawal.

How to analyse it

A sensible way to approach this relief is to ask the following questions in order:

• Was the seller acting as the personal representatives of a deceased individual?
• Is the property a dwelling for the purposes of the relief?
• Is the buyer a property trader, and is this purchase made in the course of a business that consists of buying dwellings from personal representatives of deceased individuals?
• Did the deceased occupy the dwelling as their only or main residence at some point in the two years ending with death?
• How much land is being acquired, and does it fall within the permitted area?
• If the land is larger than the permitted area, what are the relevant market values for working out the chargeable part?
• After completion, is the trader at risk of losing the relief through refurbishment, letting, licensing, or allowing occupation by relevant persons?

In practice, this means checking the estate sale documents, the buyer’s business model, evidence of the deceased’s occupation of the property, title plans, and any intended works or interim use after purchase.

Where partial relief is in point, valuation evidence may matter. The source formula depends on market value, not simply on how the purchase price was apportioned between house and land.

Example

A company regularly buys houses from estates after death as part of its trading business. It buys a house from the executors of a deceased owner. The owner had lived there as their main home within the two years before death.

If the property includes no more than the permitted area, the purchase may qualify for full relief.

If the same house is sold with a larger area of land than the permitted area, the company may still be able to claim partial relief, provided the other conditions are met. In that case, part of the consideration remains chargeable by reference to the difference between the market value of the permitted area and the market value of the whole property with all the land.

If, after buying the property, the company grants someone a lease or licence to occupy it, the relief may be withdrawn.

Why this can be difficult in practice

Several parts of this relief are fact-sensitive.

The first difficulty is whether the buyer’s business is of the right kind. The source refers to a business that consists of purchasing dwellings from personal representatives of deceased individuals. That may be straightforward for a specialist trader, but less clear where the buyer has a broader mixed property business.

The second is proving that the deceased occupied the dwelling as their only or main residence within the relevant two-year period. That can involve evidence of actual use and may not always be obvious if the deceased moved into care, spent time elsewhere, or left the property vacant before death.

The third is the land area issue. The source refers to the permitted area, but the detailed definition sits elsewhere. Where gardens, paddocks, access land, or additional plots are included, it may not be simple to decide how much land falls within the permitted area and how much falls outside it.

The fourth is the withdrawal of relief. A trader may intend to renovate and resell, but the level of refurbishment spending and any temporary occupation arrangements need careful monitoring. The source indicates that exceeding the permitted refurbishment amount or granting occupation rights can undo the relief.

Finally, partial relief depends on market value calculations. That can create room for disagreement where the excess land has development value or unusual characteristics.

Key takeaways

• This relief is limited to certain purchases by property traders from the personal representatives of deceased individuals.
• Full relief depends on the deceased having occupied the dwelling as their only or main residence within two years before death and the land not exceeding the permitted area.
• Even if relief is available on purchase, it can later be withdrawn if the trader refurbishes beyond the permitted amount, grants occupation rights, or allows occupation by certain connected people.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Stamp Duty Land Tax Relief for Property Traders Buying from Estates

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