How much SDLT would a daughter pay when buying a parent’s property for £650,000?

Introduction

People often ask how much Stamp Duty Land Tax (SDLT) is due when a family member buys a home from a parent. The answer depends mainly on the purchase price, whether the buyer already owns another dwelling, and whether any special relief applies. A common point of confusion is where an earlier purchase qualified for Multiple Dwellings Relief, but the same property is now being sold again.

The Question

A homeowner wants to sell a property to their daughter for £650,000. When the homeowner bought the property in 2021, they later received an SDLT refund because the property was treated as having more than one dwelling. The property has not changed since then. The question is how much SDLT the daughter would pay now if she buys it for £650,000.

Nick’s Explanation

Nick’s core point was that, on the ordinary residential rates in force from 1 April 2025, SDLT on a £650,000 purchase would be £22,500 if the daughter is buying as her only dwelling or as a replacement for her main residence.

He explained the calculation as follows:

• 0% on the first £125,000
• 2% on the next £125,000
• 5% on the remaining £400,000

That produces:

• £0 on the first £125,000
• £2,500 on the next £125,000
• £20,000 on the remaining £400,000

Total SDLT: £22,500.

Nick also noted that the position changes if the daughter already owns another residential property and is not replacing her main home. In that case, the higher rates for additional dwellings would apply, giving SDLT of £55,000 on a £650,000 purchase.

He further explained that the earlier refund under Multiple Dwellings Relief does not help the daughter now, because that relief was abolished for transactions completing on or after 1 June 2024.

The Law

SDLT is charged under the Finance Act 2003 on land transactions in England and Northern Ireland. For residential property, the amount payable is calculated by applying the relevant rate bands to the chargeable consideration.

For a straightforward residential purchase, the key issues are:

• the amount of chargeable consideration actually given for the property;
• whether the buyer is buying a single dwelling or more than one dwelling;
• whether the higher rates for additional dwellings apply;
• whether any relief is available, such as first-time buyer relief.

Where the buyer takes over an existing mortgage or other secured debt, that assumed debt counts as chargeable consideration for SDLT purposes.

Multiple Dwellings Relief was previously available in some cases where a transaction involved more than one dwelling. However, for transactions completing on or after 1 June 2024, that relief was abolished.

If a buyer argues that a property is not suitable for use as a dwelling, the legal threshold is now relatively high following Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799. That case confirms that poor condition alone will not easily take a property outside the residential SDLT rules.

Analysis

The starting point is to identify the chargeable consideration. On the facts given, that is £650,000, unless the daughter also takes on mortgage debt or gives any other consideration.

Next, apply the ordinary residential SDLT rates in force from 1 April 2025:

• 0% on the first £125,000
• 2% on the portion from £125,001 to £250,000
• 5% on the portion from £250,001 to £925,000

Applying those bands to £650,000 gives:

• First £125,000 at 0% = £0
• Next £125,000 at 2% = £2,500
• Remaining £400,000 at 5% = £20,000

Total: £22,500.

The earlier refund obtained by the parent does not change this result. That earlier position appears to have depended on the property qualifying for Multiple Dwellings Relief under the law as it stood in 2021. Even if the property remains physically the same, that relief is no longer available for a new transaction completing on or after 1 June 2024.

It is also important not to confuse a “multiple dwellings” argument with an “uninhabitable” argument. They are different issues. If anyone were to suggest that the property is not suitable for use as a dwelling, the threshold is now demanding after Mudan. On the facts described, where the property is being lived in and sold as a house, that line of argument would usually have no realistic role.

The next question is whether the higher rates for additional dwellings apply. If the daughter already owns another residential property at the end of the day of completion and is not replacing her only or main residence, the higher rates would apply. On a £650,000 purchase, that would produce SDLT of £55,000.

If she is replacing her main residence, or if she does not own another dwelling, the standard figure of £22,500 should apply instead. If the surcharge is paid initially but she later disposes of her former main residence within the permitted period, she may be able to reclaim the surcharge.

First-time buyer relief does not assist on a £650,000 purchase, because that relief is not available where the purchase price exceeds £500,000.

Outcome

For a purchase of the property by the daughter at £650,000, the likely SDLT is:

• £22,500 if she is buying as her only property or as a replacement for her main residence
• £55,000 if the higher rates for additional dwellings apply

The fact that the parent previously obtained an SDLT refund under Multiple Dwellings Relief does not mean the daughter can claim the same treatment now.

Practical Steps

Before exchange or completion, the buyer should check:

• whether she will own another dwelling at the end of completion day;
• whether the purchase is replacing her only or main residence;
• whether any mortgage or secured debt is being taken over, because that counts as consideration;
• whether the agreed price is the full consideration or whether any other value is being given;
• whether the transaction is definitely completing after 1 June 2024, in which case Multiple Dwellings Relief is not available.

It is sensible to prepare the SDLT calculation before completion and make sure the SDLT return reflects the correct status of the buyer, especially if there is any issue about replacement of a main residence or later repayment of the surcharge.

Conclusion

On a straightforward purchase of a parent’s property for £650,000, the daughter would usually pay SDLT of £22,500. If she already owns another dwelling and is not replacing her main home, the bill would usually rise to £55,000. The previous refund obtained on the parent’s purchase does not carry over, because Multiple Dwellings Relief has been abolished for newer transactions.

Legal References Used

• Finance Act 2003
• Finance Act 2003, SDLT residential charging provisions
• Higher rates for additional dwellings under Finance Act 2003
• First-time buyer relief under Finance Act 2003
• Abolition of Multiple Dwellings Relief for transactions completing on or after 1 June 2024
• 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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