SDLT on property acquisitions by individuals ― tax rates

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 ― tax rates
  • Introduction
  • SDLT rates and thresholds ― residential property
  • Temporary relief for residential property ― coronavirus (COVID-19)
  • Residential property purchase ―1 July 2021 to 30 September 2021
  • Residential property purchase ― 8 July 2020 to 30 June 2021
  • First-time buyer relief for residential property ― 1 July 2021 onwards
  • Non-resident surcharge
  • Qualifying conditions for first-time buyer relief
  • Application of first-time buyer relief to shared ownership property
  • More...

SDLT on property acquisitions by individuals ― tax rates

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 notevidenced 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 notidentical. The rest of this guidance note covers the law which applies to transactions in England and Northern Ireland.

This guidance note focuses on the SDLT rates that apply to transactions where the purchaser is an individual, including changes announced in Budget 2021. For a discussion of the transactions that are chargeable to SDLT, the meaning of chargeable consideration, the meaning of residential and non-residential property, anti-avoidance provisions and SDLT reporting, see the SDLT on property acquisitions by individuals guidance note.

For the rules that apply to companies, see the Stamp duty land tax ― basic rules for companies guidance note. That guidance note also includes a discussion of the SDLT relief in relation to land transactions in freeport sites announced in Budget 2021.

SDLT rates and thresholds ― residential property

The SDLT rates applied to the acquisition of residential land or property by an individual have become very complicated in recent years. Generally, such acquisitions fall to

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