Stamp duty land tax—basic principles
Stamp duty land tax—basic principles

The following Corporate guidance note provides comprehensive and up to date legal information covering:

  • Stamp duty land tax—basic principles
  • Territorial scope of the tax
  • Effective date
  • Chargeable interests
  • Chargeable consideration
  • Rates of SDLT
  • Notifiable transactions
  • Exemptions and reliefs from SDLT
  • Partnerships
  • Anti-avoidance

Stamp duty land tax (SDLT) is a tax on land transactions. Land transactions are acquisitions of chargeable interests, ie legal or equitable interests in land located in the UK, for chargeable consideration (which has a particular meaning for SDLT purposes).

SDLT is charged as a percentage of the chargeable consideration on a progressive slice system rather than a 'slab' basis. This means that the rates are charged on the portion of the chargeable consideration that falls within each rate band. In the case of leases, this includes any premium (usually a lump sum payment on the grant of a lease) and any rent.

Deadlines for:

  1. reporting land transactions, and

  2. paying the tax

are supported by penalties and interest charges.

Land transactions are chargeable transactions unless they are exempt transactions or a relief from SDLT is claimed.

Notification of chargeable land transactions and payment of SDLT must be made within 14 days of the effective date (for transactions with an effective date on or after 1 March 2019 or for transactions that become notificable on or after 1 March 2019) or 30 days (for transactions with an effective date before 1 March 2019). For further details, see Practice Note: SDLT—notifiable transactions.

Territorial scope of the tax

With effect from 1 April 2018, SDLT applies to acquisitions of land interests situated in England and Northern Ireland.

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