Stamp Duty Land Tax (SDLT) is generally payable on the purchase or transfer of property or land in the UK where the amount paid is above a certain threshold (£40,000 or more). In addition most UK land and property transactions must be notified to HM Revenue & Customs (HMRC) on a Stamp Duty Land Tax return within a certain time limit - even if no tax is due. What value is SDLT charged on?
Stamp Duty Land Tax (SDLT) may be payable when property or land is bought or transferred, whether or not the transaction involves payment of money and/or non-monetary consideration (which can include goods, services or the assumption of financial liabilities). The total value on which SDLT is payable is known as the ‘chargeable consideration’.
In a straightforward deal such as the cash purchase of a house, the chargeable consideration is simply the price paid for the property. Deciding what counts as the chargeable consideration can be more complicated for other transactions.
For all property and land transactions an SDLT return needs to be completed. This includes transactions where no SDLT is payable because the transaction value is below the current SDLT threshold, but is £40,000 or more.
SDLT does not usually apply if the property is given and received purely as a gift and there is no chargeable consideration.
Stamp Duty Land Tax relief
Some transactions are entitled to SDLT relief. In these situations you can claim the relief when you complete the SDLT return.
SDLT relief is also available for properties meeting certain strict criteria. For example, new houses that meet 'zero carbon' standards for energy efficiency have an SDLT threshold of £500,000.
Stamp Duty Land Tax Exempt
Some land and property transactions are exempt from Stamp Duty Land Tax (SDLT) regardless of their value and therefore don’t need to be notified to HM Revenue & Customs (HMRC) on an SDLT return. These include: * Property transactions where no money or