Are Probate Properties Exempt from Stamp Duty?

When inheriting a property through probate, one of the most common questions beneficiaries ask is: “Do I have to pay Stamp Duty?” At R&B Property Group, we work closely with families and individuals dealing with probate properties, and we understand the confusion around this topic.

The short answer is: probate properties are not automatically exempt from Stamp Duty Land Tax (SDLT). However, whether you need to pay depends entirely on what you plan to do with the property.

Understanding Probate Property

When someone passes away, their estate – including any property they owned – goes through a legal process called probate. If you’re the beneficiary, the property will eventually be transferred into your name or sold to release funds. During this process, you might be wondering about costs, including Stamp Duty.

Do You Pay Stamp Duty When Inheriting a Property?

Good news: you do not pay Stamp Duty when you inherit a property through probate. The transfer of ownership from the deceased to the beneficiary is exempt.

This means that simply becoming the new legal owner of the house won’t trigger any Stamp Duty costs.

When Does Stamp Duty Apply?

Stamp Duty only becomes relevant if you:

Buy out other beneficiaries’ shares – If you purchase another person’s share of the inherited property, you will usually need to pay SDLT on the value of that share.
Purchase an additional property – If you already own a home and you decide to buy another property (even if it’s the inherited one), the additional property rules may apply.
Sell and buy another property – If you sell the inherited property and buy something else with the proceeds, the usual Stamp Duty rules apply to your purchase.

Selling a Probate Property

If you’re struggling to sell a probate property, you won’t face Stamp Duty charges directly, but buyers will. This can sometimes make probate sales more complicated, especially if the property needs modernisation or isn’t in the best condition.

That’s where specialist companies like R&B Property Group can help. Through our Assisted Sale strategy we can agree an upfront price, carry out the renovation and sell the property for a higher value. Our goal is to make the process as stress-free as possible, helping beneficiaries unlock funds without the worry of a traditional sale.

Key Takeaways

Inheriting a property through probate does not trigger Stamp Duty.
You may owe Stamp Duty if you buy out other beneficiaries or purchase another property.
Selling a probate property can be stressful, but professionals like R&B Property Group could offer a great solution.

Need Help Selling Your Probate Property?

If you’ve inherited a property and you’re unsure what to do next, R&B Property Group is here to help. We specialise in Assisted Sales and our priority is to eliminate the stress of selling and maximise your returns