Stamp duty land tax
Stamp duty land tax (SDLT) is self-assessed and there are stiff penalties for concealment or fraud. It is a compulsory tax on land transactions in England and Northern Ireland. Since 1 April 2015 it has not applied to land in Scotland, which is subject to its own land and buildings transaction tax (LBTT). Wales introduced its own version of SDLT, called Land Transaction Tax (LTT), from 1 April 2018. Since English and Welsh property law is the same, this means practitioners must apply 2 differing stamp taxes depending on the location of the property.
This section explains what SDLT is and how it applies to transactions.
As most SDLT avoidance schemes do not work, an understanding of SDLT can assist structuring transactions in a tax-efficient way. SDLT on leases is discussed in detail.