Stamp Duty Land Tax (SDLT)

* There is a 3% surcharge over and above these rates for certain transactions. This includes the purchase of a second homes or a replacement main residence where, by the date of completion the previous main residence has not yet been sold. In the latter instance a refund of the surcharge can be claimed if the original main residence is sold within the available time limit.

* There is a 2% surcharge for property purchases where at least one of the purchasers are non-resident in the UK

Stamp Duty Land Tax on non-residential or mixed use property

When purchasing a new non-residential or mixed use property, the non-residential rates of SDLT apply.

These are:

For leasehold properties, the SDLT value is based on the rent rather than the properties actual value.

The effective date

This is the date that the SDLT tax liability occurs, many consider that date to be the day of completion, this could well be the case. The rules actually state that the effective day can be the date of completion, or the date on which the contract is ‘substantially performed’ whichever is earlier.

Substantial performance can be when most of the purchase price is paid, or when the purchaser has unfettered access to the land. In some cases, substantial performance could take place well before the actual date of completion, triggering a liability that the developer is not prepared for.

Owning property through a company

Purchases by Partnerships, Limited Companies and LLP’s are extremely complicated and a detailed understanding of the rules that apply in these circumstances is important to ensure that SDLT is not overpaid.

SDLT reliefs

The SDLT rules contain a number of reliefs which are available to reduce the tax liability on the acquisition of property. These reliefs are massively underused so many property buyers end up paying too much SDLT.



SDLT can be mitigated using reliefs where more than one dwelling is being purchased at the same time. It can also be reduced by correctly recognising the subject matter of transactions which are linked with each other or even by correctly identifying when property becomes residential.