SDLT Explained

Origins & Evolution

Despite being a temporary solution to raise money, stamp duty was so successful that it remained in place well after the war years and eventually evolved into a permanent form of UK taxation.

The original form of stamp duty involved physically stamping an official document to indicate the appropriate tax had been paid on a transaction. Nowadays the physical stamp is no longer required as UK stamp duty taxation records are updated electronically.

Who Pays Stamp Duty?

For land transactions, provided the land acquired is located in the UK, then UK stamp duty tax is chargeable. This means that even if a property is purchased from overseas by someone who is not resident in the UK, the tax will still need to be paid.

What is SDLT?

Stamp duty taxation is limited to the acquisition of property and land situated in the UK, the boundary being the low water mark of every part of the UK which borders the sea.

UK Stamp Duty Land Tax (SDLT) is payable on all property purchases over a certain purchase price, and the charge applies to all purchases of:

• Houses
• Flats
• Other land and buildings

Regional Variations

How is SDLT Calculated?

The rate of tax is a percentage of the monetary transaction, the amount being rounded down to the nearest pound. Stamp duty rates have been reviewed in recent times - please see our stamp duty rates section on the calculator page for updated information.

📈 UK Stamp Duty on Shares

UK Stamp Duty Reserve Tax (SDRT) is payable on electronic share transactions when shares are transferred. UK stamp duty is not payable however when shares are first issued.

If shares are transferred electronically, stamp duty is automatically deducted at the time the transaction goes through.