Stamp Duty Land Tax (SDLT) is a tax paid by buyers purchasing property or land of a certain value.

How much stamp duty (SDLT) will I pay?

SDLT is calculated as a percentage of the amount paid when land or property is bought or transferred. The only exception is if the property or land is exempt from SDLT, or if tax relief is due.

The amount of SDLT you will pay depends on:

• whether the property is leasehold or freehold
• if you’re a first time buyer
• if you’re buying an additional property
• the amount you pay for the property

Use HMRC’s SDLT calculator to work out how much stamp duty you will pay.

Do I pay stamp duty on the whole amount?

The quick answer is ‘no’. Fortunately stamp duty is charged in thresholds, a bit like income tax. It means that rate of each threshold is only applied to the proportion of the sale within that range.

What are stamp duty reliefs and exemptions?

Some transactions are exempt from stamp duty tax, such as properties that are transferred as part of a divorce settlement or the dissolving of a civil partnership. Property that is left to someone in a will is also exempt, along with transactions that don’t have a chargeable consideration.

Learn more about HMRC’s stamp duty reliefs and exemptions.

How and when should I pay stamp duty?

HMRC must be notified within 14 days of the sale’s completion. Usually your solicitor or agent will send a Stamp Duty Land Tax (SDLT) Return for you, and you will then pay the amount directly to them. We always recommend that you check this with them, and never assume!

You can also send a SDLT return yourself online or by post, as well as paying the stamp duty directly to HMRC.

Do I have to submit a stamp duty return if there’s nothing to pay?

Yes, even if you think that you won’t have to actually pay any stamp duty, you must still submit a return.

Learn more about our online accounting services, or get an instant quote online.

Want to learn more?

Subscribe to our newsletter to get accounting tips like this right to your inbox

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

More posts by this author