Stamp Duty Land Tax and Land Transaction Tax (Taxation)-FS Flashcards
(10 cards)
What is Stamp Duty Land Tax (SDLT)?
A tax payable on property and land transactions in England, administered by HMRC.
What is Land Transaction Tax (LTT)?
A tax payable on property and land transactions in Wales, administered by the Welsh Revenue Authority (WRA).
What is the deadline for submitting an SDLT return in England?
Within 14 days of completion of the property transaction.
What is the deadline for submitting an LTT return in Wales?
Within 30 days of completion of the property transaction.
List: SDLT Tax Bands (Residential, England)
List: SDLT Tax Bands (Residential, England)
* Up to £250,000 → 0%
* £250,001 – £925,000 → 5%
* £925,001 – £1.5 million → 10%
* Over £1.5 million → 12%
🔹 A 3% surcharge applies to purchases of additional properties (e.g., second homes or buy-to-lets).
\will be changed after the July exam
List: LTT Tax Bands (Residential, Wales)
- Up to £225,000 → 0%
- £225,001 – £400,000 → 6%
- £400,001 – £750,000 → 7.5%
- £750,001 – £1.5 million → 10%
- Over £1.5 million → 12%
🔸 Separate higher rates apply to additional properties.
will be changed after the July exam
What legal document proves SDLT has been paid?
The SDLT5 certificate, issued by HMRC.
What is a key distinction between SDLT and LTT beyond rates and thresholds?
- SDLT: UK-wide legislation, revenue goes to the UK Treasury
- LTT: Devolved Welsh legislation, revenue stays with the Welsh Government
What are the higher LTT rates for additional residential properties in Wales?
- Up to £180,000 → 4%
- £180,001 – £250,000 → 7.5%
- £250,001 – £400,000 → 9%
- £400,001 – £750,000 → 11.5%
- £750,001 – £1.5 million → 14%
- Over £1.5 million → 16%
will be changed after the July exam
Why is LTT in Wales different from SDLT in England?
Because LTT is a devolved tax, Wales sets its own rates, thresholds, and collection processes to align with its economic policy and public service funding priorities.
