Stamp duty land tax ― basic rules for companies ― tax rates

Produced by Tolley

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

  • Stamp duty land tax ― basic rules for companies ― 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 ― corporate purchaser
  • Residential property purchase 8 July 2020 to 30 June 2021 ― corporate purchaser
  • Residential property purchase from 1 October 2021 onwards ― corporate purchaser
  • Higher rate of SDLT
  • Non-resident surcharge
  • 15% flat rate of SDLT
  • More...

Stamp duty land tax ― basic rules for companies ― tax rates

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 SDLT rates that apply to transactions where the purchaser is a company, 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 Stamp duty land tax ― basic rules for companies guidance note.

SDLT rates and thresholds ― residential property

The acquisition of residential land or property by a company generally fall to be taxed under one of four different rates:

  1. the standard rates of SDLT

  2. the higher rates of SDLT (an extra 3% surcharge on the standard SDLT rates, often known as the additional dwellings supplement)

  3. a

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