Do you pay stamp duty on Right to Buy?

Yes, you pay stamp duty on Right to Buy purchases, but it's calculated on the discounted price you actually pay, not the full market value. For example, if the market value is £300,000 but your RTB discount is £100,000, you pay SDLT on £200,000.

Can first-time buyers get FTB relief on Right to Buy?

Yes, if you qualify as a first-time buyer and the discounted purchase price is £625,000 or less, you can claim first-time buyer relief. This means you pay no stamp duty on the first £425,000 and 5% on the portion from £425,001 to £625,000.

What is Preserved Right to Buy?

Preserved Right to Buy applies if your council home was transferred to a housing association. You retain your Right to Buy rights with the same discount entitlement. Stamp duty is still calculated on the discounted purchase price.

How does Right to Acquire differ for stamp duty?

Right to Acquire is for housing association tenants without full RTB. It offers smaller discounts (maximum £9,000 to £16,000 depending on region). Stamp duty is calculated on the discounted price, and first-time buyer relief applies if eligible.

Do Right to Buy rules apply in Scotland and Wales?

Right to Buy was abolished in Scotland (2016) and Wales (2019). However, if you purchased under RTB before abolition, the same SDLT principles applied. Scotland now uses LBTT and Wales uses LTT, both with different rate structures.

Right to Buy Stamp Duty Guide 2026

How Right to Buy Discount Works for SDLT

Right to Buy allows council tenants to purchase their home at a discount. The discount depends on how long you've been a tenant:

Houses: 35% discount after 3 years, plus 1% per additional year up to 70% (maximum 30 years)
Flats: 50% discount after 3 years, plus 2% per additional year up to 70% (maximum 10 years)
Maximum discount: £136,400 in London, £102,400 elsewhere in England (2026 figures)

For stamp duty purposes, you pay SDLT on the discounted purchase price you actually pay, not the property's market value.

Key Point:

Stamp duty is calculated on the amount you pay after the Right to Buy discount is applied, which can significantly reduce your SDLT bill.

SDLT Calculated on Discounted Price

HMRC treats the discounted purchase price as the consideration for stamp duty purposes. This is the actual amount you pay, not the market valuation.

Example Calculation

Market value: £300,000

Your RTB discount: £100,000 (33%)

Purchase price: £200,000

SDLT calculation:

£0 - £250,000: 0% = £0
Total SDLT: £0

Standard residential rates apply (0% up to £250,000, then 5%, 10%, 12%). The discount means many Right to Buy purchases fall below or just above the £250,000 threshold.

Preserved Right to Buy

Preserved Right to Buy (PRTB) applies when council housing stock has been transferred to a housing association. If you were a secure council tenant before the transfer, you retain your Right to Buy rights.

Key Features

Same discount entitlement as standard Right to Buy
Discount based on your total tenancy period (including time as a council tenant)
Same maximum discount caps apply (£136,400 London, £102,400 elsewhere)
Stamp duty calculated on discounted price in the same way

From an SDLT perspective, there's no difference between standard RTB and PRTB. Both use the discounted purchase price for stamp duty calculation.

Right to Acquire for Housing Associations

Right to Acquire is a separate scheme for housing association tenants who don't qualify for full Right to Buy. It offers smaller, fixed discounts:

Most of England: £9,000 discount
London boroughs: £16,000 discount
Northwest and Eastern regions: £11,000 to £16,000 depending on location

Stamp Duty Treatment

Stamp duty is calculated on the purchase price after the Right to Acquire discount. Because the discounts are smaller than RTB, the SDLT saving is also smaller.

Example: Right to Acquire in London

Market value: £280,000

Right to Acquire discount: £16,000

Purchase price: £264,000

SDLT:

£0 - £250,000: 0% = £0
£250,001 - £264,000: 5% = £700
Total SDLT: £700

First-Time Buyer Relief Eligibility

If you've never owned property before (in the UK or worldwide), you can claim first-time buyer relief on your Right to Buy purchase. This is assessed on the discounted price.

FTB Relief Rates

£0 - £425,000: 0%
£425,001 - £625,000: 5%
Above £625,000: Not eligible for FTB relief (standard rates apply)

Good News for First-Time Buyers:

Most Right to Buy purchases after discount fall well below £425,000, meaning first-time buyers pay zero stamp duty. This combines two major tax advantages.

FTB Example: Right to Buy in Manchester

Market value: £180,000

RTB discount (50%): £90,000

Purchase price: £90,000

First-time buyer? Yes

SDLT with FTB relief: £0

(Well below £425,000 threshold)

Scotland and Wales

Right to Buy has been abolished in Scotland (2016) and Wales (2019). However, the same principles applied historically.

Scotland (LBTT)

If you purchased under RTB before August 2016, you paid Land and Buildings Transaction Tax (LBTT) on the discounted price. Scotland's LBTT has different rates and bands:

£0 - £145,000: 0%
£145,001 - £250,000: 2%
£250,001 - £325,000: 5%
£325,001 - £750,000: 10%
Over £750,000: 12%

Wales (LTT)

RTB purchases before January 2019 used Land Transaction Tax (LTT) on the discounted price:

£0 - £225,000: 0%
£225,001 - £400,000: 6%
£400,001 - £750,000: 7.5%
£750,001 - £1.5m: 10%
Over £1.5m: 12%

Practical Examples

Example 1: Council Flat in Birmingham

Scenario: 12 years as tenant, buying a flat

Market value: £160,000

RTB discount: 66% (50% + 8 years × 2%) = £105,600 (capped at £102,400)

Purchase price: £57,600

First-time buyer: No

SDLT: £0

(Below £250,000 threshold)

Example 2: Council House in London

Scenario: 20 years as tenant, buying a house

Market value: £450,000

RTB discount: 52% (35% + 17 years × 1%) = £234,000 (capped at £136,400)

Purchase price: £313,600

First-time buyer: Yes

SDLT with FTB relief:

£0 - £425,000: 0% = £0
Total: £0

Example 3: Housing Association (Right to Acquire)

Scenario: Housing association tenant, South East England

Market value: £235,000

Right to Acquire discount: £11,000

Purchase price: £224,000

First-time buyer: Yes

SDLT with FTB relief: £0

(Below £425,000 FTB threshold)

Common Questions

Do I need to tell HMRC about the Right to Buy discount?

Your solicitor will handle the SDLT return, reporting the discounted purchase price as the consideration. The RTB discount is factored into the price shown on the purchase documentation.

Can I claim the 3% surcharge refund if I sell my previous home?

Right to Buy means you're purchasing the home you already live in, so you won't have a previous main residence to sell. The 3% surcharge scenario doesn't apply to RTB purchases.

What if I sell within 5 years and have to repay discount?

If you sell within 5 years, you must repay some or all of the RTB discount to the council. However, this doesn't affect the stamp duty you already paid. SDLT is assessed at the time of purchase based on the discounted price.

Does the market valuation affect my SDLT?

No. The market valuation is used to calculate your discount, but SDLT is charged only on the actual purchase price you pay after the discount.

Calculate Your Right to Buy Stamp Duty

Use our calculator to work out stamp duty on your discounted Right to Buy purchase price, including first-time buyer relief if applicable.

Calculate Stamp Duty