Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) was introduced with effect from 1 December 2003: at the same time, stamp duty was abolished.

SDLT is a tax on land transactions that requires the taxpayer to self-assess the SDLT liability. The tax applies to any transaction in land: defined as ‘the acquisition of a chargeable interest in land’. For the purposes of SDLT, an acquisition encompasses a surrender, release, or variation, as well as the creation of a chargeable interest. The term ‘chargeable interest’ is widely defined, being ‘an estate, interest, right or power in or over land in the UK; or the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power’.

From 1 April 2015 SDLT has ceased to apply in Scotland, where it has been replaced by Land and Buildings Transaction Tax.

From 1 April 2018, SDLT will cease to apply in Wales, where it is to be replaced by Land Transaction Tax.

Stamp Duty Reserve Tax

Stamp Duty Reserve Tax (SDRT) is paid on the purchase of shares and unit trusts. It is paid at a flat rate of 0.5 per cent based on what was paid for the shares, not on what the shares are worth.