Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT), introduced in Finance Act 2003, is a charge on land transactions in the UK and broadly covers the purchase or transfer of property or land in the UK. Examples include the purchase of a business or residential property, the assignment of a lease and the grant of a lease.

Did you know that piers, jetties and similar structures, with one end attached to the UK, come under the consideration of SDLT?

SDLT is also likely to be relevant on the incorporation or liquidation of a business.

The rate of tax is a percentage of the chargeable consideration for the transaction.

 

  • The chargeable consideration for the purpose of SDLT comprises anything given for the transaction that is money or money’s worth. Cash is the most common form of consideration, but it is important to be aware that consideration can also be non-monetary such as: goods, works or services, the release from a debt or the transfer of other property.
     
  • The percentage is determined by whether the land in question is entirely residential or is wholly or partly non-residential and by the amount of the chargeable consideration. SDLT is payable by the purchaser. The purchaser is responsible for making a land transaction return and paying the stamp duty land tax within 30 days of the effective date of the transaction
    However, some transactions qualify for reliefs that can reduce the amount of tax payable - or mean that no SDLT is due. For example, there are special reliefs for first-time buyers of residential property.

In addition, some land and property transactions are exempt from SDLT regardless of their value. These include gifts and property that is left in will. We can advise individuals and businesses of the right amount of SDLT payable and also ensure that relief claims or exemptions are not missed. Charities for example are exempt from stamp duty when buying a property or a lease.

Plummer Parsons

Plummer Parsons

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