Personal Tax

SDLT on property disposals by individuals

Produced by Tolley
  • 29 Jun 2022 07:32

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

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

SDLT on property disposals by individuals

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.

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.

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 by individuals guidance note.

Linked transactions and multiple dwellings

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