Last updated: 14 October 2026
Do you pay stamp duty on an inherited property?
No. Inheriting a property under a will or intestacy isn’t a purchase, so there is no Stamp Duty Land Tax (SDLT). There is one exception: if you take on a mortgage on the property as part of the inheritance, or pay other beneficiaries to buy them out, SDLT may be due on the amount you pay or take on. An inherited property can also affect SDLT on your future purchases.
When SDLT can apply
| Situation | SDLT? |
| You inherit a house outright under a will | No |
| You inherit and take over the mortgage | Possibly, on the debt you take on in some cases |
| You buy out a sibling’s share of the inherited house | Yes, on what you pay for their share |
| You inherit a share and later buy another home | The inherited share may count for the 5% surcharge |
Inherited shares and the higher rates
If you own a share of an inherited property when you buy another home, you may have to pay the 5% higher rates. There is a relief: an inherited share of 50% or less is ignored for 3 years from the date of inheritance.
Example
Tom inherits a 50% share of his late mother’s house with his sister in 2026. Within 3 years he buys his first flat for £280,000. His 50% inherited share is ignored, so he pays standard rates and may qualify for first-time buyer relief if he has never owned a home.
Buying out other beneficiaries
If you pay your siblings to take over their shares, SDLT applies to the amount you pay. If the arrangement is made through a deed of variation within 2 years of death, with no payment, SDLT generally doesn’t apply.
Inheritance tax and CGT
- IHT is charged on the deceased’s estate, not on you as the beneficiary
- You inherit at the market value at death, which is your base cost for future CGT
- If you sell later, CGT is due on the increase since death, at 18% or 24%, and must be reported within 60 days
Letting or living in it
If you let the inherited property, the rental profit is taxable. If you move in, it may become your main residence for private residence relief.
Mistakes with inherited property
Family members often sell inherited homes without telling HMRC about the gain, or forget that rent received during the estate administration is taxable. Keep the probate valuation and any correspondence with the executors. If you plan to live in or let the property, get advice before the sale.
Frequently asked questions
Do I need to file an SDLT return for an inheritance?
No, unless you pay for the property or take on debt.
Does the deceased’s mortgage pass to me?
Usually it must be repaid from the estate, or you arrange a new mortgage.
What if I inherit a whole property and buy another home?
The 3-year relief only applies to shares of 50% or less. A whole property counts for the surcharge.
Is SDLT different in Scotland and Wales?
Yes. They have LBTT and LTT.
Related: stamp duty when buying a sibling’s share and reclaiming overpaid IHT.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with inherited property and tax. See our property tax accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
