SDLT on property acquisitions by individuals

Produced by Tolley

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

  • SDLT on property acquisitions by individuals
  • Introduction
  • Recent SDLT changes relevant to individuals
  • Overview
  • Chargeable interests
  • Exempt interests
  • Exempt transactions
  • Gift
  • Divorce or civil partnership dissolution
  • Assents and appropriations by personal representatives
  • More...

SDLT on property acquisitions by individuals

Introduction

Stamp duty land tax (SDLT) was introduced for land transactions with effect from 1 December 2003. Whereas stamp duty was a tax on documents, SDLT is a tax based on the acquisition of a chargeable interest, whether or not evidenced in writing.

When it was originally introduced, SDLT applied to all UK land transactions. Devolution has resulted in Scotland and Wales introducing their own regimes.

From 1 April 2015, land and buildings transaction tax (LBTT) applies to land transactions in Scotland. For details of LBTT, see Sergeant and Sims on Stamp Taxes AA12–AA22 (SSSD, AA[AA351]–SSSD, AA[AA862]). See also the guidance on the Revenue Scotland website.

From 1 April 2018, land transaction tax (LTT) applies to land transactions in Wales. For details of LTT, see Sergeant and Sims on Stamp Taxes AA23–AA34 (SSSD, AA[AA901]–SSSD, AA[AA2115]). See also the guidance on the Welsh Revenue Authority website.

Whilst the underlying rules applying to LBTT, LTT and SDLT are broadly similar in nature, the taxes are not identical. The rest of this guidance note covers the law which applies to transactions in England and Northern Ireland.

This guidance note focuses on the rules for transactions where the purchaser is an individual. For details of the SDLT rates that apply to these transactions, including those announced at Budget 2021, see the SDLT on property acquisitions by individuals ― tax rates guidance note.

For the rules that apply to companies, see the Stamp duty land tax ― basic rules for companies guidance note.

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