Stamp duty land tax ― basic rules for companies

Produced by Tolley in association with Grant Thornton's stamp taxes team
  • (Updated for Budget 2021)

The following Corporation Tax guidance note Produced by Tolley in association with Grant Thornton's stamp taxes team provides comprehensive and up to date tax information covering:

  • Stamp duty land tax ― basic rules for companies
  • Introduction
  • Recent SDLT changes relevant to companies
  • Acquisition of chargeable interest
  • Contracts to acquire a chargeable interest
  • SDLT rates and thresholds ― overview
  • Leases
  • SDLT rates
  • Chargeable consideration
  • Linked transactions
  • More...

Stamp duty land tax ― basic rules for companies

Introduction

Stamp duty land tax (SDLT) is generally payable on the purchase or transfer of interests in land and buildings in England and Northern Ireland where the amount paid is above a certain threshold. In addition, most of these land and property transactions must be notified to HMRC on an SDLT return (also known as a land transaction return), even if no tax is due. See the SDLT ― administration guidance note for further commentary on notifiable transactions.

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[AA851]). 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[AA2101]. 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 that applies to transactions in England and Northern Ireland.

This guidance note focuses on the rules for transactions where the purchaser is a company. For details of the SDLT rates that apply to these transactions, including those announced at Budget 2021, see the Stamp duty land tax ― basic rules for companies ― tax rates guidance note.

For the rules that apply to individuals, see the SDLT on property acquisitions by individuals guidance note.

Recent SDLT changes relevant to companies

The 2% SDLT surcharge on purchases of residential property in England and Northern Ireland by non-residents has been introduced for transactions with an effective date on or after 1 April 2021, see the Non-resident SDLT surcharge for residential property ― 1 April 2021 onwards guidance note.

In addition, the Government announced changes to the

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