Stamp Duty Land Tax (SDLT)

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On 1st December 2003, SDLT replaced stamp duty on sales of land and buildings (“stamp duty” on such sales was abolished by Finance Act 2003 s.125). SDLT is graduated on a “banding” basis (since 4th December 2014 for residential and since 17th March 2016 for non-residential and mixed use property). There are various reliefs and exemptions. Wales has its own version called “Land Transaction Tax” wef 1st April 2018.

There are current proposals for reducing the deadline for paying SDLT (and filing SDLT returns) from 30 to 14 days (see Gov’t notes of 6th July 2018 on proposed changes to SDLT time limits).

Part of relevant consideration	SDLT rate	Notes	Useful links	Statutory ref	Last updated	Author
first £125,000	0%	wef 4th December 2014, SDLT was changed so that instead of a single rate of tax on a transaction, different rates are payable on different parts of the relevant consideration	Official explanatory notes to the Stamp Duty Land Tax Act 2015 and UK gov't SDLT calculator and UK gov't guidance on SDLT	Finance Act 2003 Part 4 and Stamp Duty Land Tax Act 2015 s.1	1st Sept 2018	HJS
next £125,000 viz £125,001 to £250,000	2%	A land transaction is exempt from DLT if there is no "chargeable consideration" for the transaction (Finance Act 2003 sch 3 para 1). Taking over a mortgage counts as "chargeable consideration" (Finance Act 2003 sch 4 para 8)	Official explanatory notes to the Stamp Duty Land Tax Act 2015 and UK gov't SDLT calculator and UK gov't guidance on SDLT	Finance Act 2003 Part 4 and Stamp Duty Land Tax Act 2015 s.1	1st Sept 2018	HJS
next £675,000 viz £250,000 to £925,000	5%		Official explanatory notes to the Stamp Duty Land Tax Act 2015 and UK gov't SDLT calculator and UK gov't guidance on SDLT	Finance Act 2003 Part 4 and Stamp Duty Land Tax Act 2015 s.1	1st Sept 2018	HJS
next £575,000 viz £925,001 to £1.5m	10%		Official explanatory notes to the Stamp Duty Land Tax Act 2015 and UK gov't SDLT calculator and UK gov't guidance on SDLT	Finance Act 2003 Part 4 and Stamp Duty Land Tax Act 2015 s.1	1st Sept 2018	HJS
Above £1.5m	12%	so as an example SDLT on a £2m house purchase works out at £153,750 - viz zero on 1st £125K, 2% on next £125K. 5% on next £675K, etc.	Official explanatory notes to the Stamp Duty Land Tax Act 2015 and UK gov't SDLT calculator and UK gov't guidance on SDLT	Finance Act 2003 Part 4 and Stamp Duty Land Tax Act 2015 s.1	1st Sept 2018	HJS

1. Residential property - standard rate (NOTE: wef 1st April 2016 an extra 3% must be added to each SDLT rate ”band” below, including the zero rate band, if a purchase is by a company or by an individual as a second home or investment - Finance Act 2016 s.128).

2. Residential property - reduced rate for first-time buyers up to £500,000

Part of relevant consideration	SDLT rate	Notes	Useful links	Statutory ref	Last updated	Author
first £300,000	0%	Applies (subject to conditions) if the purchaser intends to occupy the property as their only or main residence.	HMRC notes on SDLT: relief for first time buyers (22nd Nov 2017)	Finance Act 2003 sch 6ZA introduced by FA 2018 s.41	1st Sept 2018	HJS
next £200,000 viz £300,001 to £500,000	5%	Applies (subject to conditions) if the purchaser intends to occupy the property as their only or main residence.	HMRC notes on SDLT: relief for first time buyers (22nd Nov 2017)	Finance Act 2003 sch 6ZA introduced by FA 2018 s.41	1st Sept 2018	HJS
Above £500,000	No reduction	SDLT is at full standard rate on the total consideration if more than £500,000 (ie the table above applies)	UK gov't webpage re SDLT relief for land or property transactions	Finance Act 2003 sch 6ZA introduced by FA 2018 s.41	1st Sept 2018	HJS

3. Non-residential and mixed use property

Part of relevant consideration	SDLT rate	Notes	Useful links	Statutory ref	Last updated	Author
first £150,000	0%	If leasehold,in addition to SDLT on any premium there is also further SDLT of up to 2% payable on the net present value of rent payable for the life of the lease.	Gov't notes on SDLT (non-residential and mixed use land and property rates)	Finance Act 2003 s.55 as amended by Finance Act 2016 s.127	1st Sept 2018	HJS
next £100,000 viz £150,001 to £250,000	2%	If leasehold,in addition to SDLT on any premium there is also further SDLT of up to 2% payable on the net present value of rent payable for the life of the lease.	Gov't notes on SDLT (non-residential and mixed use land and property rates)	Finance Act 2003 s.55 as amended by Finance Act 2016 s.127	1st Sept 2018	HJS
Above £250,000	5%	If leasehold,in addition to SDLT on any premium there is also further SDLT of up to 2% payable on the net present value of rent payable for the life of the lease.	Gov't notes on SDLT (non-residential and mixed use land and property rates)	Finance Act 2003 s.55 as amended by Finance Act 2016 s.127	1st Sept 2018	HJS

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Stamp Duty Land Tax (“SDLT”)