Stamp Duty Land Tax: linked purchases or transfers
Source: gov.uk (2025-03-31)

Find out how to apply Stamp Duty Land Tax (SDLT) when there are multiple sales or transfers between the same buyer and seller.

Overview

You do not pay Stamp Duty Land Tax if you buy a property in:
- Scotland from 1 April 2015 — you pay Land and Buildings Transaction Tax (https://www.gov.uk/sdlt-scottish-transactions)
- Wales from 1 April 2018 — you pay Land Transaction Tax (LTT) (https://www.gov.uk/guidance/stamp-duty-land-tax-welsh-transactions)
When 2 or more property transactions involve the same buyer and seller, they count as ‘linked’ for Stamp Duty Land Tax. HMRC may count people connected to a buyer or seller as being the same buyer or seller.

If 2 or more transactions are treated as linked then the buyer pays any Stamp Duty Land Tax due on the total value of all linked transactions. This may mean that they pay a higher rate of Stamp Duty Land Tax than if the transactions are counted individually.

If all the properties that link are residential, apply the residential property rates (https://www.gov.uk/stamp-duty-land-tax/residential-property-rates) to the linked transactions.

Higher rates of Stamp Duty Land Tax may be charged from 1 April 2016 on purchases of additional residential properties (http://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property).

If any or all of the properties that link are non-residential, apply the non-residential property rates (https://www.gov.uk/stamp-duty-land-tax/nonresidential-and-mixed-rates) to the linked transactions.

Stamp Duty Land Tax transactions that count as linked

HMRC counts transactions as linked if:
- there’s more than one transaction
- the transactions are between the same buyer and seller or between people connected with either of them
- the transactions are part of a single arrangement or scheme or part of a series of transactions
Connected persons

A connected person could be your relative, for example your brother, sister, parent, grandparent, husband, wife or civil partner, or one of their relatives.

If the buyer or seller is a business, a connected person would be a business partner and their relatives. It also includes companies and groups of companies who are connected to the business.

Different kinds of linked transactions

How and when you do a Stamp Duty Land Tax return depends on the type of linked transaction you have.

Transactions linked as part of a single arrangement

Some transactions are linked because they’re part of the same single arrangement or scheme. It’s the same whether you document them separately or not. If each transaction has a separate contract, and if the sales are part of the same deal, they count as linked for Stamp Duty Land Tax.

If you sell a residential property in such a way that one person buys the house but their relative buys the garden, the 2 transactions are linked. They’re connected people and they’re buying things from the same seller as part of a single deal.

Because the 2 transactions are linked, calculate the amount of tax due on the total chargeable consideration for all the transactions. Then, apportion this amount between the transactions in proportion to their share of the total chargeable consideration (https://www.gov.uk/stamp-duty-land-tax-the-amount-used-to-calculate-whats-payable#the-chargeable-consideration).

Transactions linked as part of a series of transactions

When a sale is followed by one or more related sales, if there’s something to link all the transactions together, they count as linked transactions for Stamp Duty Land Tax. There’s no limit to the length of time between the transactions.

Example calculations to work out tax due as part of a series of transactions

The following guidance includes example calculations to work out the amount of Stamp Duty Land Tax you would pay if purchasing properties as part of a series of transactions.

You’re buying a new house from a builder for your family to live in. Later, you buy a second and then a third house from the same builder to hold as investments. The builder offers a special price for the second and third houses. You pay £280,000 for the first house and £275,000 each for the second and third houses once they are finished.

The 3 transactions are linked as part of a series. You must work out the amount of tax due on the total chargeable consideration for all the transactions to date, at the rates in force at the time of that transaction. Then, you must apportion this amount to each transaction in proportion to its share of the total chargeable consideration. You may need to pay more tax on the earlier transactions.

All the transactions in this example take place when the thresholds and rates are those in force from 1 April 2025.

When calculating Stamp Duty Land Tax, the amount calculated is round down to the nearest pound.

On the first transaction (the first house bought for £280,000), tax is due at 0% on £125,000, 2% on the next £125,000 and 5% on the final £30,000. The total would be £4,000.

On the second transaction (the second house, bought for £275,000), the higher rates of Stamp Duty Land Tax for additional properties apply because you own more than one residential property. This is an extra 5% on top of the residential rates for a single property transaction. The higher rates do not apply to the first transaction.

The tax due on the total consideration of £555,000 for the 2 properties is shown in the following calculations.

Calculation on property 1

Calculate the tax due on the total of the consideration for the linked transactions at standard residential rates.0% on the first £125,000, 2% on the next £125,000 and 5% on the next £305,000. Total = £17,750

Apportion the result of the previous step according to the proportion of the total linked consideration that is specific to property 1.£17,750 × (£280,000 ÷ £555,000) = £8,954 (less £4,000 tax already paid on the first transaction) = £4,954

Calculation on property 2

Calculate the tax due on the whole of the consideration for the linked transactions at the higher rates for additional properties.5% on the first £125,000, 7% on the next £125,000 and 10% on the final £305,000. Total = £45,500

Apportion the result of the previous step according to the proportion of the total linked consideration that is specific to property 2.£45,500 × (£275,000 ÷ £555,000) = £22,545

At this stage, additional tax of £4,954 is due for the earlier transaction at the same time as the £22,545, tax for the second transaction.

On the third transaction (the third house, bought for £275,000), the tax due on the total consideration of £830,000 for the 3 properties is shown in the following calculations.

Calculation on property 1

Calculate the tax due on the total of the consideration for the linked transactions at standard residential rates.0% on the first £125,000, 2% on the next £125,000 and 5% on the final £580,000. Total = £31,500

Apportion the result of the previous step according to the proportion of the total linked consideration that is specific to property 1.£31,500 × (£280,000 ÷ £830,000) = £15,891 (less tax already paid £4,000 + £4,954) = £1,672

Calculation on property 2

Calculate the tax due on the whole of the consideration for the linked transactions at the higher rates for additional properties.5% on the first £125,000, 7% on the next £125,000 and 10% on the final £580,000. Total = £73,000

Apportion the result of the previous step according to the proportion of the total linked consideration that is specific to property 2.£53,900 × (£275,000 ÷ £830,000) = £24,186 (less £22,545 of tax already paid) = £1,641

Calculation on property 3

Calculate the tax due on the whole of the consideration for the linked transactions at the higher rates for additional properties.5% on the first £125,000, 7% on the second £125,000 and 10% on the final £580,000. Total £73,000

Apportion the result of the previous step according to the proportion of the total linked consideration that is specific to property 2.£73,000 × (£275,000 ÷ £830,000) = £24,186

At this stage, additional tax of £1,672 is due for the first transaction and additional tax of £1,641 is due for the second transaction. These additional amounts are due at the same time as the £24,186 tax for the third transaction.

Total tax on the 3 linked transactions is £58,998.

If the transactions in this example were not linked, the amount of Stamp Duty Land Tax payable on the second and third transactions would still have been charged at the higher rates for additional dwellings, but the first £125,000 of the consideration for each transaction would be charged at 5%, the next amount above £125,000 and up to £250,000 at 7%, and the remaining £25,000 at 10%. So, the total Stamp Duty Land Tax due on the 3 transactions would have been £39,000.

This could be the case if the purchaser had bought each of the 3 houses from the same builder in 3 completely separate transactions with:
- no prior agreement or option
- no special price or discount
- anything else to link them
Notify HMRC and pay Stamp Duty Land Tax

When you complete transactions you’ll usually need to tell HMRC by filling a Stamp Duty Land Tax return. With linked transactions you must notify each purchase or transfer within 14 days of the effective date, this is usually the completion date.

Some land and property transactions do not have to be notified (https://www.gov.uk/guidance/stamp-duty-land-tax-transactions-that-dont-need-a-return) to HMRC.

When you fill in a return online you must show that there are linked transactions. If you’re filling a paper SDLT1 form put an X in box 13.

Return and payment for a single scheme or arrangement

If the linked transactions are part of the same scheme or arrangement and they have the same effective date, you can make a single return and one payment. If you do, the transactions count as a single transaction and all the buyers count as joint buyers and all must sign the return.

If they have different effective dates, for example, if one buyer bought the house on one date and the other bought the land on a different date, you’d fill in 2 returns and send separate payments of Stamp Duty Land Tax.

Returns and payments for a series of linked transactions

If there’s a series of linked transactions, notify HMRC and pay any Stamp Duty Land Tax due when you complete each purchase.

You’ll do a separate return for each later linked transaction and, on each occasion you’ll submit a further return for each earlier transaction if more tax is due on those transactions.

To do this, write to HMRC Stamp taxes (https://www.gov.uk/government/organisations/hm-revenue-customs/contact/stamp-duty-land-tax), and quote the Unique Transaction Reference Number for each of the linked transactions. Set out the revised amount of tax due on the earlier transaction (that result from the later linked transaction) on your return.

Stamp Duty Land Tax rates

You pay Stamp Duty Land Tax on transactions worth more than the threshold. There is more than one threshold for Stamp Duty Land Tax, with different rates for each.

You can find out more about thresholds and rates for Stamp Duty Land Tax (https://www.gov.uk/stamp-duty-land-tax).

Scottish transactions

Where Stamp Duty Land Tax applies to a transaction it cannot be linked with any transaction where Land and Buildings Transaction Tax applies, even if it includes land in Scotland.

Welsh transactions

Where Stamp Duty Land Tax applies to a transaction it cannot be linked with any transaction where Land Transaction Tax applies, even if it includes land in Wales.

Help and advice on linked transactions

For more help contact the HMRC Stamp Taxes helpline (https://www.gov.uk/government/organisations/hm-revenue-customs/contact/stamp-duty-enquiries-shares-and-land).