Tax Planning for UK Investments – Stamp Duty
S.42 of Finance Act 2003.
You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land
over a certain price in England, Wales and Northern Ireland.
The current SDLT threshold is £125,000
for residential properties and £150,000 for non-residential land and
SDLT no longer applies in Scotland. Instead
you pay Land
and Buildings Transaction Tax when you buy a property.
You pay the tax when you:
buy a freehold property
buy a new or existing leasehold
buy a property through a shared
land or property in exchange for payment, eg you take on a mortgage or
buy a share in a house
Rates - How much you pay depends on whether the land or
You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land
Tax calculator to work out how much tax you’ll pay. (There’s a
- You may be able to reduce the amount of tax you
pay by claiming
relief, eg if you buy more than one property (‘multiple dwellings’).
- The value you pay SDLT on (the ‘consideration’)
- The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.
- Sometimes it might include another type of payment like:
works or services
release from a debt
transfer of a debt, including the value of any
Find out how
to work out the consideration if your situation is complicated.
How and when to pay
You must send an SDLT return
to HMRC and pay the tax within 30 days of completion.
If you have a solicitor, agent or conveyancer,
they’ll usually file your return and pay the tax on your behalf on the day of
completion and add the amount to their fees.
If they don’t do this for you, you can file a return and pay the tax yourself.
There are certain situations where you don’t
need to send a return.