I’m acquiring property from an estate, am I eligible to be exempt from Stamp Duty Land Tax (SDLT) if I rent it out?

If you have acquired a property from an estate and you are classed as a Property Trader you may be eligible to be exempt from SDLT, subject to a few relevant conditions. To be classed as a Property Trader you can be a company or a limited liability partnership and be in the business of buying and selling dwellings.

The conditions for the exemption include that you are acquiring the property from personal representatives of the prior owner and that the prior occupant occupied the property as their main residence for a period of two years before the date of death.

It is also required that you do not spend more than the permitted amount of money on refurbishments, and that you do not grant a lease or licence of the dwelling or permit any principals or employees from residing within the dwelling.

Therefore, renting out a property that has been acquired from an estate that otherwise would be eligible for relief from Stamp Duty Land Tax, breaches these conditions and results in the withdrawal of relief.

However, it is worth noting that when relief is withdrawn, the amount of tax chargeable is the same as the amount that would have been charged without the relief from SDLT.

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