When my aunt passed away, she left me her house in Kent. I never expected inheriting a property would come with so many surprises—especially when it came to Stamp Duty on probate property.
At first, I thought “Great, I’ve inherited a house, so no Stamp Duty to worry about.” But then I found out that things get tricky if you decide to buy out other family members who also have a share in the property. That’s exactly what happened with me.
The Probate Process Was Only the Start
Getting the Grant of Probate took a few weeks, during which nothing could really move forward with the property. After probate was granted, my sibling and I needed to decide what to do. They didn’t want to keep their share, so we agreed I’d buy them out.
Sounds simple, right? Well, it wasn’t quite that straightforward.
The Stamp Duty Curveball
My solicitor told me that because I was paying my sibling for their share, it counts as a purchase in the eyes of HMRC. So, I had to pay Stamp Duty on probate property.
I won’t lie, that wasn’t something I’d budgeted for. I’d thought the inheritance meant I owned the house outright, but technically I only owned part of it until I bought the rest. HMRC treats any payment for a share of the property like a normal property sale.
If you own another property, like I did, there’s also the risk of paying an extra 3% surcharge on top. Thankfully, the total Stamp Duty wasn’t ruinous, but it was a shock to the system.
Turning a Family Home Into an Investment
Once I sorted the legal stuff and paid the Stamp Duty, I got stuck into renovating the place. It was a bit tired but structurally sound, so with some work, it’s now a solid rental that’s providing a good income.
It’s satisfying keeping the property in the family while making a smart investment—but it wasn’t without its headaches.
What I’d Say to Anyone Facing This
If you’re dealing with a probate property and thinking of buying out other beneficiaries, make sure you factor in Stamp Duty on probate property.
Here’s what I learned:
· Simply inheriting the property doesn’t trigger Stamp Duty.
· But if you pay to take full ownership, it does.
· The SDLT is based on the amount you pay for the share—not the full property value.
· If you already own another home, beware of the 3% extra charge.
It’s definitely worth chatting with a solicitor early on to get a clear picture of costs. Probate can be emotional and complicated enough without getting caught out by unexpected taxes.
For me, navigating this taught me a lot about the fine print of property inheritance—and helped me turn a tricky situation into a rewarding investment.
