Stamp Duty Land Tax (SDLT) is often overlooked in estate planning, but property transfers during your lifetime or through certain trust arrangements can trigger SDLT liabilities.
In 2026, the SDLT rates for residential property in England and Northern Ireland are: 0% up to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million, and 12% above £1.5 million. First-time buyer relief raises the 0% threshold to £425,000.
If you transfer a property with an outstanding mortgage to your children or into a Trust, SDLT may be payable on the amount of the mortgage. For example, transferring a property with a £200,000 mortgage could trigger an SDLT bill.
Transfers between spouses and civil partners are generally exempt from SDLT, provided the couple are living together. This exemption is important for estate planning involving property ownership changes.
Gifts of property without a mortgage generally do not attract SDLT, as there is no 'chargeable consideration'. However, other taxes such as Capital Gains Tax may still apply.
The additional property surcharge of 5% (increased from 3% in 2025) applies when purchasing additional properties. This can affect estate planning strategies involving the purchase of property through trusts or family members.
At Castle Family Legal, we consider all tax implications when advising on property-related estate planning. Contact us for comprehensive advice.
