SDLT on property disposals

By Tolley

The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • SDLT on property disposals
  • Linked transactions and multiple dwellings relief
  • Pre-completion transactions
  • Sales to connected companies

Stamp duty land tax (SDLT) is generally payable on the purchase or transfer of property or land in the UK where the amount paid is above a certain threshold. If the consideration is over £40,000, the transaction must be notified to HMRC on an SDLT Return, even though no SDLT may be due.

FA 2003, ss 76–77A (subscription sensitive)

Until 31 March 2015, SDLT applied to all UK land transactions. From 1 April 2015, land and buildings transaction tax (LBTT) applies to land transactions in Scotland and SDLT applies to land transactions in the rest of the UK. Whilst the underlying rules applying to LBTT and SDLT are broadly similar in nature, the two taxes are not identical. For details of LBTT, see Sergeant and Sims on Stamp Taxes AA12–AA21. The rest of this guidance note covers the law which applies to transactions in England, Wales and Northern Ireland (and Scotland up to 31 March 2015).

Scotland Act 2012, ss 28, 29, Sch 3; Land and Buildings Transaction Tax (Scotland) Act 2013 (both subscription sensitive)

Note that collection of taxes on land transactions is devolved to the Welsh Assembly under Wales Act 2014, s 15 (subscription sensitive). The new Welsh tax which replaces SDLT is to be called land transaction tax (LTT) and is expected to apply to land transactions in Wales with effect from 1 April 2018.

Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (subscription sensitive)

Since SDLT is normally paid by the purchaser in the transaction, there are only limited points for the vendor to consider. SDLT is discussed further in the SDLT on property acquisitions guidance note.

Linked transactions and multiple dwellings relief

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