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

The following Corporate practice 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
  • Automatic exemptions
  • Reliefs which must be claimed
  • More...

FORTHCOMING CHANGE relating to SDLT for non-residents buying residential property: The government confirmed at Spring Budget 2020 that it will introduce an SDLT surcharge of 2% for non-residents buying residential property. This follows a consultation that closed on 6 May 2019. The surcharge will apply from 1 April 2021 (subject to transitional provisions) and will be included in FB 2020–21. For more detail, see News Analyses: Reforming SDLT—the government consults on a non-UK resident surcharge and Spring Budget 2020—Tax analysis—Non-UK resident stamp duty land tax (SDLT) surcharge.

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

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