Stamp Duty Land Tax (SDLT) usually applies when buying property from parents or other family members in the UK.
Even if the sale is between relatives, SDLT is calculated based on the chargeable consideration given for the property.
Is Stamp Duty Based on Market Value or Sale Price?
If you purchase a property from a family member at a discounted price, stamp duty is normally calculated on the amount you actually pay — not the full market value.
However, special rules may apply if the transaction is not conducted at arm’s length or involves a mortgage.
What If the Property Is Gifted?
If a property is fully gifted and no money changes hands, stamp duty is not usually payable.
However, if you take over responsibility for an existing mortgage, the outstanding mortgage balance may count as chargeable consideration for SDLT purposes.
Example Scenario
If your parents sell you a property worth £400,000 for £300,000, stamp duty is normally calculated on the £300,000 purchase price.
If you also assume responsibility for a mortgage, that amount may be included when calculating SDLT.
Related Stamp Duty Situations
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