SDLT glossary

Stamp Duty Land Tax (SDLT)

Stamp Duty Land Tax is the tax paid on buying land or property in England and Northern Ireland. It is charged in bands on the price and administered by HMRC.

Land Transaction Tax (LTT)

Land Transaction Tax is the Welsh equivalent of SDLT, collected by the Welsh Revenue Authority since 1 April 2018.

Land and Buildings Transaction Tax (LBTT)

Land and Buildings Transaction Tax is the Scottish equivalent of SDLT, collected by Revenue Scotland.

SDLT return

An SDLT return is the form that tells HMRC about a land or property purchase and works out the tax due. It must be filed within 14 days of the effective date.

Effective date

The effective date is the date a transaction is treated as taking place for SDLT — usually completion, or earlier if the contract is substantially performed.

Substantial performance

Substantial performance is when a buyer takes possession or pays most of the price (normally 90%) before completion, which brings the effective date forward.

Chargeable consideration

Chargeable consideration is the amount SDLT is charged on — usually the price, including VAT and any debt taken over, but not genuine furniture and movable items.

Higher rates for additional dwellings

The higher rates for additional dwellings are SDLT rates 5 percentage points above the standard rates, paid when a buyer will own more than one home, or the buyer is a company.

First-time buyer relief

First-time buyer relief is a reduced SDLT rate for buyers who have never owned a home and will live in the property: 0% up to £300,000 and 5% up to £500,000.

Non-resident surcharge

The non-resident surcharge is an extra 2% SDLT on residential purchases by buyers who were in the UK for fewer than 183 days in the 12 months before buying.

Net present value (NPV)

Net present value is the total rent payable over a lease, discounted at 3.5% a year. SDLT on lease rent is charged on the NPV.

Premium

A premium is a lump sum paid for the grant of a lease. It is taxed at the normal SDLT rates, separately from the rent.

Linked transactions

Linked transactions are purchases between the same buyer and seller (or connected people) that form part of one arrangement. SDLT is worked out on their total.

UTRN

A UTRN (Unique Transaction Reference Number) is the 11-character reference that identifies an SDLT return and is used as the payment reference.

SDLT5 certificate

The SDLT5 is the certificate HMRC issues when an SDLT return has been filed. HM Land Registry needs it to register the purchase.

STORN

A STORN (Stamp Taxes Online Reference Number) is the 10-digit reference a firm receives when it enrols for HMRC Stamp Taxes Online.

Stamp Taxes Online

Stamp Taxes Online is HMRC's online service that solicitors, conveyancers and other agents use to file SDLT returns.

SDLT1, SDLT2, SDLT3 and SDLT4

SDLT1 is the main return. SDLT2 adds extra buyers or sellers, SDLT3 adds extra properties and SDLT4 covers complex transactions such as company purchases and leases.

Mixed-use property

Mixed-use property is property with both residential and non-residential parts, such as a shop with a flat above. It is taxed at non-residential rates.

Additional Dwelling Supplement (ADS)

The Additional Dwelling Supplement is Scotland's extra LBTT charge on additional homes: 8% of the whole price from 5 December 2024.

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