SDLT is often the biggest single cost of incorporating a portfolio — but Partnership Relief can sometimes remove it entirely. Get a clear answer for your situation.
When landlords decide to move their rental properties into a limited company, Stamp Duty Land Tax (SDLT) is usually the cost that stops them in their tracks. It is often larger than the Capital Gains Tax bill, and unlike CGT there is no equivalent of Incorporation Relief to defer it automatically.
This guide explains exactly why SDLT arises on incorporation, how it is calculated using the residential bands and the 5% additional-property surcharge, and the main route that can reduce the charge significantly — and in some cases to nil — through Partnership Relief. If you are weighing up whether to incorporate, this is the number you need to understand first. For the wider picture, start with our complete property incorporation guide.
The instinctive reaction is "I already own these properties — why would I pay stamp duty to move them to my own company?" The answer is in the way the law treats connected parties.