Inherited property can affect whether you count as a first-time buyer for stamp duty.

First-time buyers in England and Northern Ireland pay no stamp duty land tax (SDLT) on the first £300,000 of a home costing up to £500,000, and 5% on the part from £300,001 to £500,000. The relief is worth up to £5,000.

Who counts as a first-time buyer?

To qualify, you must never have owned a major interest in a residential property anywhere in the world. This includes property you inherited, even if you only inherited a share of it, and even if it has since been sold.

Where two or more people buy together, every buyer must be a first-time buyer. If one of them inherited part of a home in the past, the relief is lost for all of them.

Whether a beneficiary is treated as having owned an inherited property can depend on how and when the estate passes it to them. It is worth taking advice before the estate is finalised.

The higher rates for additional properties

Inheriting part of a property can also affect the 5% surcharge on additional homes. There is some help here: a share of 50% or less that you inherited within the previous three years is ignored when deciding whether the surcharge applies.

The higher rates for additional Inherited property and first-time buyer relief: an example

Sam has never bought a home. In 2026 he and his sister inherit their late mother’s flat in equal shares, and it is transferred into their names. In 2027 Sam buys his own home for £350,000.

Because he now owns half of the flat, Sam is not a first-time buyer. He pays SDLT of £7,500 at the normal rates, instead of £2,500 with first-time buyer relief, a difference of £5,000. As his inherited share is 50% and was inherited within the last three years, the 5% surcharge does not apply.

If you are a beneficiary of an estate and plan to buy a home, please speak to us before the estate is finalised. We can explain how your inheritance affects your stamp duty.