Stamp Duty Land Tax in England and Land Transaction Tax in Wales

Introduction

**Stamp duty land tax ('SDLT')** is charged on property transactions in England — **freehold and leasehold**, **residential and commercial** — at different rates depending on the **type** of property and the **value** of the transaction. SDLT is payable to **HMRC** **within 14 days of completion**; failure to pay can result in **fines and penalties**, and any application to the Land Registry will not be accepted until it is paid. In **Wales**, SDLT has been replaced by **land transaction tax ('LTT')**, administered by the **Welsh Revenue Authority**, for all transactions on or after **1 April 2018**. This chapter takes you through the **residential** and **non-residential** rates and bands, the **first-time buyers' relief**, the **5% additional-property surcharge**, the **2% non-UK resident surcharge**, the **17% corporate rate**, the **progressive (banded) method of calculation**, and the principal **reliefs and exemptions** in both England and Wales.

Assessment focus

Property taxation is assessed within **SQE1 FLK2**. SDLT and LTT are a **favourite source of single best answer questions (SBAQs)**: the SRA expects you to **apply** the correct rates, surcharges and reliefs to a **realistic client scenario** rather than simply to recall them. Questions frequently combine SDLT/LTT with **VAT**, **capital gains tax (CGT)** and **corporation tax (CT)** in an **interdisciplinary** fact pattern, and may turn on whether a buyer is a **first-time buyer**, a **non-UK resident**, the **owner of an additional property** or a **company**, and on whether the land is in **England (SDLT)** or **Wales (LTT)**. This is a **closed-book** assessment, so the rates, bands and key thresholds must be committed to memory.

Study tips

1) **First identify the jurisdiction**: land in **England** → **SDLT** (HMRC); land in **Wales** → **LTT** (Welsh Revenue Authority). The two regimes have **different bands** and Wales has **no first-time buyers' relief**. 2) Memorise the **residential SDLT bands** (0% to £125,000; 2% to £250,000; 5% to £925,000; 10% to £1.5m; 12% above) and remember SDLT is **progressive (banded)** — each slice is taxed at its own rate. 3) Learn the three **surcharges/special rates**: **+5%** for additional residential property (since 31 October 2024); **+2%** for non-UK residents (England and NI, since April 2021); **17%** flat rate for companies buying residential property over **£500,000** (since 31 October 2024). 4) For **first-time buyers' relief**: **all** buyers must be first-time buyers; **0%** up to **£300,000**, **5%** between £300,001 and £500,000, and **no relief** above **£500,000**. 5) Note the **14-day** payment deadline to HMRC and that the **Land Registry** will refuse registration until SDLT/LTT is paid.