Does a property trader buying a probate property through a company get 100% SDLT relief?

Introduction

Buyers often search for this issue when a company that trades in property is buying a dwelling from an estate after probate has been granted. The question is whether the purchase can qualify for the special property trader relief from Stamp Duty Land Tax (SDLT), which can reduce the charge to nil if all conditions are met.

The answer depends on the detailed rules in Schedule 6A to the Finance Act 2003. A probate sale can qualify, but only if the buyer is a genuine property trader and the statutory conditions are satisfied.

The Question

A property trader is buying a residential property through a limited company. The property is being sold as part of an estate administration following a grant of probate. The buyer wants to know whether the transaction qualifies for 100% SDLT relief under paragraph 3 of Schedule 6A to the Finance Act 2003.

Nick’s Explanation

Nick’s core point was that, on the limited facts provided, the transaction may qualify for property trader relief if the statutory conditions are met. In substance, his answer was:

Assuming the purchase falls within the probate-related conditions in Schedule 6A, and assuming the company meets the requirements for property trader relief, the acquisition should qualify for relief.

That is the right starting point. Probate status on its own does not automatically produce relief. The buyer must still show that the company is a qualifying property trader, that the dwelling is acquired in the course of that trade, and that the other restrictions in Schedule 6A are satisfied.

The Law

The relevant legislation is Schedule 6A to the Finance Act 2003, which provides relief for certain acquisitions of dwellings by property traders. Paragraph 3 deals with one of the categories of qualifying acquisition, including certain purchases connected with personal representatives and probate estates.

In broad terms, Schedule 6A is intended to relieve SDLT where a genuine property trader acquires a dwelling for the purposes of its property trading business in circumstances specified by the legislation.

The relief is not a general exemption for all probate purchases. The legislation must be read carefully. The key points usually include:

• the purchaser must be a property trader within the meaning of the Schedule;
• the acquisition must be of a dwelling;
• the purchase must fall within one of the qualifying cases in the Schedule, including the relevant probate-related route if paragraph 3 applies;
• the purchase must be made for the purposes of the property trading business;
• the anti-avoidance and withdrawal provisions must not be triggered.

Where relief applies, the effect can be full relief from SDLT on the acquisition.

Analysis

The question should be worked through in stages.

First, is the buyer a qualifying property trader? A company can qualify, but it must genuinely carry on a property trading business. That usually means buying and selling property as trading stock, rather than acquiring property as a long-term investment. If the company is buying to renovate and resell in the ordinary course of its trade, that points towards trader status. If it is buying to hold and let, that points away from relief.

Second, is the subject matter a dwelling? If the property is residential in nature, that part is usually straightforward. If the building is in very poor condition, some buyers ask whether it is not suitable for use as a dwelling. In that type of case, the condition threshold is now relatively high following Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799. A building will not fall outside dwelling treatment merely because it needs substantial repair or modernisation.

Third, does the purchase fall within the probate-related gateway in paragraph 3 of Schedule 6A? This is the critical point. It is not enough that probate has been granted in a general sense. The seller, the capacity in which the seller acts, and the surrounding facts must fit the statutory wording. In practice, this usually means checking whether the sale is by personal representatives or otherwise within the precise probate scenario contemplated by the paragraph.

Fourth, is the acquisition made for the purposes of the property trading business? The company should be able to show that the property is being acquired as trading stock with a real intention to resell. Internal records, board minutes, financing arrangements, and accounting treatment may all help support that position.

Fifth, do any restrictions or clawback rules apply? Schedule 6A contains provisions that can deny or withdraw relief if, for example, the property is not dealt with in line with the trading purpose or if occupation occurs in a way that breaches the rules. These points need to be checked carefully before relying on the relief.

So, the practical legal answer is that a probate purchase by a company can qualify for 100% SDLT relief, but only where the detailed conditions in paragraph 3 and the rest of Schedule 6A are actually met.

Outcome

A property trader buying a probate property through a limited company may be entitled to full SDLT relief under paragraph 3 of Schedule 6A FA 2003. However, probate alone does not guarantee relief. The purchase must match the statutory probate category, the company must genuinely be a property trader, and the acquisition must be for the purposes of that trade.

If those conditions are met, the transaction should qualify for 100% relief. If any of them are missing, SDLT may still be payable, potentially at residential rates and, depending on the facts, with the higher rates for additional dwellings.

Practical Steps

• Check the exact identity and capacity of the seller to confirm that the transaction fits paragraph 3 of Schedule 6A.
• Confirm that the buying company is carrying on a genuine property trading business, not an investment business.
• Document the intention to acquire the dwelling as trading stock for resale.
• Review the contract, probate papers, and transaction structure against the wording of Schedule 6A.
• Check whether any anti-avoidance, withdrawal, or occupation-related provisions could deny the relief.
• Ensure the SDLT return is completed consistently with the relief being claimed.

Conclusion

Yes, a company property trader can obtain 100% SDLT relief on a probate-related dwelling purchase, but only if the transaction falls squarely within paragraph 3 of Schedule 6A FA 2003 and all other conditions for property trader relief are satisfied. The key issue is not simply that the property is a probate sale, but whether the legislation applies to the exact facts of the purchase.

Legal References Used

• Finance Act 2003, Schedule 6A
• Finance Act 2003, Schedule 6A, paragraph 3
• Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799

This page was last updated on 22 March 2026.

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