What is Stamp Duty Land Tax (SDLT)? What are the rates of Stamp Duty Land Tax (SDLT)?

This is a freeview 'At a glance' guide to SDLT rates and allowances. 

Stamp Duty Land Tax (SDLT) is paid on the purchase of an interest in land as a percentage of the purchase consideration. Different rates apply according to the type of property and the type of purchaser.

SDLT At a glance

Since 1 April 2018 SDLT only applies to properties in England and Northern Ireland.

Coronavirus

  • Between July 8 2020 and 31 March 2021, a temporary extension to the nil rate threshold (to £500,000) applied to residential property for both basic SDLT and higher rates due to Coronavirus. This was extended to 30 June 2021 at the same rate, with a £250,000 limit applying between 1 July 2021 and 30 September 2021. 
  • On 3 June 2020 HMRC updated their guidance on exceptional circumstances that allow refunds following the sale of the main residence outside of the normal three-year limit to specifically include the impact of COVID-19 preventing the sale. This was updated on 3 June 2021 to include delays caused by government-imposed restrictions or public authority action which prevented the sale.  See SDLT: Residential property higher rates

The Scottish Parliament also temporarily extended its refund period for land and buildings transaction tax from 18 months to three years. See LBTT: Land and Buildings Transaction Tax

Time limits and penalties

The deadline for filing an SDLT Return and paying any tax due is 14 days (30 days to 1 March 2019) from the effective date of the transaction.

There is no penalty for late payment but interest is charged from the due date up to the payment date.

Penalties for late filing:

  • Within three months of the filing date fixed penalty £100.
  • Between three and 12 months of the filing date fixed penalty £200.
  • More than 12 months after filing date tax geared penalty is up to 100% in addition to the fixed penalty.

Tax geared penalties of between 0% and 100% apply if errors are made in a document which leads to a loss of tax, see Penalties: Errors in returns and documents.

See SDLT: Amending returns

Special SDLT rules

  • If two or more dwellings are acquired, Multiple Dwellings Relief can be claimed. 
  • Two more transactions which form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser are caught by the Linked Transactions rules.


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