Stamp Duty Land Tax (SDLT)
When you buy a property or land you must fill in a Land Transaction Return. We will normally complete the return for you as part of handling the transaction but legally you are responsible for the information submitted so you need to check the form carefully before you sign it.
To avoid problems and delays with the post and the handling of forms at HMRC we usually lodge the details and payment of any tax electronically. There are tight timescales for lodging the form and paying the tax and if the timescales are not met penalties and interest might be payable.
Once the return has been processed a 'Land Transaction Return Certificate' is issued. The certificate should be sent to us direct by HMRC. If you receive it please pass it on to us as soon as possible. The certificate needs to be lodged with the Land Registry to permit the Land Registry to register your purchase.
Rates of tax
The rates of tax depend on the value of the transaction, whether the property is residential or non-residential and if it is in a disadvantaged area. The HMRC web-site provides a disadvantaged area search to assess if a property is in a disadvantaged area.
The rates applicable from 23rd March 2006 are set out in the following table:
| Rate | All property in disadvantaged areas | All other Residential property | All Non-residential property |
| Zero | £0 - £150,000 | £0 - £125,000 | £0 - £150,000 |
| 1% | Over £150,000-£250,000 | Over £125,000-£250,000 | Over £150,000-£250,000 |
| 3% | Over £250,000-£500,000 | Over £250,000-£500,000 | Over £250,000-£500,000 |
| 4% | Over £500,000 | Over £500,000 | Over £500,000 |
Grant of new leases
On the grant of a new lease the value of the transaction is not merely the price paid but also takes in to account the rent that will be payable during the period of the lease. The calculations are complicated so HMRC provides a web based lease calculator to enable people to work out the SDLT that will be payable.