Stamp Duty Land Tax

Question 1

When must SDLT be paid?

Answer 1

Within 14 days of completion, irrespective of whether SDLT is actually due.

Question 2

Does SLDT have to be paid on incorporation of a business?

Answer 2

Yes, if a business incorporates and receives shares, SDLT is is owed on the market value of the land / buildings transferred

Question 3

What are exempt transfers for the purposes of SDLT?

Answer 3

• Gifts
• Transfers to spouses
• Property transferred to former spouse upon divorce
• Property transferred under the variation of a will

Question 4

SLDT Late penalties for late filing

Answer 4

£100 if under 3 months late

£200 if over 3 months late

Question 5

Is there a surcharge if a person purchases an additional residential property?

Answer 5

Yes, add 3% to each band of tax charged (including 0)

Not applicable to transactions under £40,000

Question 6

How much is SLDT on leases?

Answer 6

Tax is chargeable on both the lease premium and the net present value of the rent - rates will be given

Question 7

What are the SLDT reliefs?

Answer 7

Purchase of first residence for consideration of up to £500,000 - 0% up to £300,000 and 5% on remaining £200,000

Linked transactions - multiple linked transactions = tax paid on the aggregate consideration paid divided by the number of dwellings

Six or more residential properties = tax payer can opt to apply commercial property rates instead.