SDLT Reliefs and Reclaims Explained: How UK Property Investors Can Save on Stamp Duty
SDLT Reliefs and Reclaims Explained: How UK Property Investors Can Save on Stamp Duty
Stamp Duty Land Tax (SDLT) is one of the biggest upfront costs when buying property in the UK. But here’s something many investors, landlords, and overseas buyers don’t always realise — there are legitimate reliefs and reclaim options that could save you thousands. Whether you’re purchasing multiple flats, moving to the UK, investing through a company, or relocating as part of a job, there are SDLT exemptions or reduced rates worth knowing about.
In this guide, we’ll walk you through the most valuable SDLT reliefs available in 2025, who qualifies, and how they work — from Multiple Dwellings Relief and First-Time Buyer Relief to Group Relief, Charity exemptions, and more.
If you’re new to UK property tax or want a quick overview before diving into reliefs, check out our friendly guide to SDLT in 2025.
First-Time Buyer Relief
Stamp Duty can be a real hurdle when you’re buying your first home — but First-Time Buyer Relief offers a welcome break.
Who qualifies?
You must have never owned a property anywhere in the world, including inherited properties.
The property must be your only or main residence (not a buy-to-let or second home).
The purchase price must be £500,000 or less.
What’s the benefit?
Pay 0% SDLT on the first £300,000.
Then just 5% on the portion between £300,001 and £500,000.
For purchases above £500,000, no relief applies — full SDLT rates are due.
This relief can save up to £5,000. It’s particularly useful for first-time buyers moving to the UK, but it's important to understand that overseas ownership can disqualify you. If you’re unsure, we can help you confirm your eligibility.
Multiple Dwellings Relief (MDR)
If you’re buying more than one property at once, MDR could reduce your SDLT bill considerably.
Who qualifies?
Applies when buying two or more dwellings in a single or linked transaction.
Each dwelling must be self-contained — typically with its own kitchen, bathroom, and access.
What’s the benefit?
SDLT is calculated based on the average price per dwelling, rather than the total cost.
The tax due on that average is then multiplied by the number of properties.
A minimum 1% SDLT still applies, but this is often lower than standard rates.
MDR is especially powerful for landlords purchasing a block of flats, HMOs, or short-term lets. It's even more effective when combined with other reliefs like the 6+ Dwellings Rule.
3% Surcharge Relief (Replacement Home / Uninhabitable Property)
If you’re buying an additional property, the 3% higher SDLT rate often applies — but there are exceptions.
Who qualifies?
If you're replacing your main residence and haven't yet sold the old one, you'll still pay the 3% surcharge upfront — but you can reclaim it within 36 months after selling the former home.
If a property is uninhabitable at the time of purchase — for example, it lacks a roof, kitchen, or essential utilities — HMRC may consider it non-residential, meaning the 3% may not apply.
What’s the benefit?
Either an upfront reduction in SDLT or a refund after completion of a qualifying transaction.
Particularly useful during relocations or significant renovations.
HMRC’s definition of “uninhabitable” is strict. A dated kitchen or worn-out carpet won’t qualify — the property must genuinely be unfit for living. We can help assess your case and gather evidence if you think this applies to your purchase.
Mixed-Use / Non-Residential SDLT Rates
Not all property is strictly residential — and where there’s a mix of uses, you might benefit from commercial SDLT rates.
What qualifies?
Properties that have both residential and commercial elements, like a shop with a flat above.
Fully non-residential purchases, including offices, warehouses, and development land.
What’s the benefit?
Commercial SDLT rates are typically lower:
0% on the first £150,000
2% between £150,001 and £250,000
5% above £250,000
No 3% surcharge is added.
This classification is ideal for landlords acquiring mixed-use portfolios or converting commercial buildings. It’s also frequently used to optimise tax when purchasing properties with business potential.
6+ Dwellings Rule
Buying six or more residential units in a single deal? You can switch from residential to commercial SDLT rates.
Who qualifies?
Applies when purchasing six or more residential dwellings in one transaction or linked transactions.
What’s the benefit?
The property is treated as non-residential for SDLT purposes.
This means lower rates apply and the 3% surcharge is avoided.
MDR can also be used in conjunction, depending on structure.
This rule is especially advantageous for investors scaling up portfolios, purchasing HMO blocks, or acquiring off-plan units. It's a strategy worth planning ahead for — the savings can be significant.
With reliefs like MDR or the 6+ Dwellings Rule, landlords can help manage SDLT — but don’t forget Section 24 and how it impacts mortgage interest relief. Read more in our full guide to Section 24.
Group Relief
If you're transferring property within a group of companies, SDLT may not be payable at all — provided specific conditions are met.
Who qualifies?
Companies must be within the same 75% ownership group.
The transaction must not be part of a tax avoidance scheme.
The ownership link must continue for a minimum holding period after the transfer.
What’s the benefit?
No SDLT is payable on qualifying intra-group property transfers.
This relief is often used when restructuring a property portfolio, transferring assets between SPVs, or consolidating under a holding company. It’s vital to ensure group ownership thresholds are met and maintained.
If you’re weighing up whether to invest through a limited company or in your own name, it’s worth understanding the implications of SDLT when buying in a Limited Companies vs Personal Name.
Charity Relief
Charities that buy or receive property gifts for charitable use may not have to pay stamp duty.
Who qualifies?
Must be a registered UK charity.
The property must be used exclusively for charitable purposes.
What’s the benefit?
Full exemption from SDLT.
This is especially useful for charities purchasing care homes, community buildings, or accommodation for charitable purposes. If any part of the property is used for commercial gain, even if related, relief might be lost — so proper structuring is essential.
Sub-Sale Relief (Assignments)
Sub-sale relief applies when a buyer enters a contract to buy a property, then assigns it to someone else before completion.
Who qualifies?
The original buyer must not complete the transaction.
The final buyer (assignee) must complete directly with the seller.
What’s the benefit?
The intermediate party avoids paying SDLT.
Only the final purchaser pays stamp duty, reducing duplication and costs.
This is common in property development and option agreement strategies. Timing is everything — missteps can lead to double SDLT, so early planning is crucial.
Employer Relocation Relief
Employees relocating for work may qualify for SDLT relief as part of a formal company-supported move.
Who qualifies?
Applies when a company helps an employee buy or sell their home as part of a relocation.
Strict conditions apply around the timing, valuation, and type of transaction.
What’s the benefit?
Full or partial SDLT exemption on the transfer, depending on the setup.
This relief benefits both the employer and the employee and is commonly used in international relocations or senior staff transfers. We can help HR teams and individuals ensure compliance with HMRC’s criteria.
Summary Table
There’s no one-size-fits-all approach when it comes to SDLT planning. The right relief (or combination of reliefs) will depend on your personal circumstances — whether you're buying your first home, investing through a company, or managing a growing rental portfolio.
The bottom line? You could be overpaying on stamp duty without even knowing it.
That’s where we come in.
At Sky Vista Property Solutions, we help UK-based and overseas property investors make smart, tax-efficient decisions. Whether it’s assessing if you're eligible for MDR, Group Relief, or reclaiming a 3% surcharge, we’ve got the experience to guide you.
Need help with an SDLT relief claim or property tax advice?
Email us at [email protected] or get in touch to book a free initial consultation with our expert team.
We’re here to make your UK property investment strategy more profitable — and less stressful.
