Stamp duty vs SDLT: what’s the difference?

The tax system in the UK can be confusing, especially regarding stamp duty land tax (SDLT). This tax is charged on purchasing residential property, land, or shares in an incorporated company and can add up quickly. This blog post will explain what stamp duty is, who pays it, when it has to be paid, and some exceptions. We will also look at the future of stamp duty land tax and how changes in the rules might affect the property market. So if you’re wondering what stamp duty land tax is, read on.

Stamp duty vs SDLT: what’s the difference?

Stamp duty on homes and land

It can be confusing to know the difference between stamp duty and stamp duty land tax. Both tax rates apply at different stages of the buying process, so it’s essential to be aware of the differences. For example, stamp duty land tax is charged when purchasing a home or land, while stamp duty is an additional fee for transferring property title.

The tax varies depending on the purchase price, so it’s important to know your options. Additionally, both taxes are applied at different stages of the buying process - stamp duty land tax is applied when you apply for the property purchase. In contrast, stamp duty is applied when the property is transferred. To make things even more confusing, stamp duty land tax can also be called stamp duty, stamp duty surcharge, stamp duty land tax surcharge, and stamp duty tax. So, what's the difference between stamp duty land tax and stamp duty? Check out our video for more information.

What is stamp duty?

A tax needs to be paid before any contract can be drawn up - that’s stamp duty. Stamp duty is usually calculated at 0.5% of the value of the item purchased, although some exemptions are available.

Once stamp duty has been paid, the property title transfers automatically to the purchaser. Stamp duty is a tax on purchasing certain property items, such as houses and cars. Make sure you know the different types of stamp duty and how it’s calculated before making a purchase.

Who pays stamp duty land tax?

SDLT is a tax charged in the United Kingdom on the purchase or disposal of property. It is sometimes referred to as stamp duty reserve tax (SDRT). Stamp duty land tax applies to purchasing residential property, land, or property-related assets such as shares, bonds, or units in collective investment schemes.

It is a tax payable by non-residents who purchase an English or Welsh property with a price over £125,000. Buyers who don’t reside in the UK but purchase a property outside of England and Wales may be required to pay stamp duty, although this is not always the case.

Who will calculate SDLT?

If you’re considering purchasing a property, it’s essential to know the difference between stamp duty and SDLT. SDLT is the higher stamp duty rate payable on all property purchases over £125,000. The person who will calculate the tax is the Revenue Collector.

The stamp duty land tax (SDLT) applies to purchasers of property for residential purposes. There are two types of stamp duty: simple and complex. Simple stamp duty applies to properties worth up to £125,000, while complex stamp duty applies to properties worth more than £125,000 but less than the threshold of £250,000.

When do you have to pay Stamp Duty?

There are a few things to remember regarding stamp duty and SDLT. You must pay stamp duty if the purchase is made with someone else in your name (mortgage or loan). Secondly, if the property is bought as your main residence or second home, you don’t have to pay stamp duty or SDLT.

Finally, if you’re buying a jointly-owned property, both parties will have to pay stamp duty and SDLT based on their share of the purchase value. Remember that stamp duty applies when the property’s purchase value is over £125,000 (or £160,000). So, it’s important to be aware of these tax rules before purchasing.

When is stamp duty not payable?

Stamp duty is a tax on property transactions in the United Kingdom. It is payable by the buyer (or the person buying on behalf of the buyer) and is based on the property’s price and the value of any duty-free stamp transfers involved in the transaction. Stamp duty is known as 'land tax’ in other parts of the world.

The tax is imposed on the purchase price of the property, as well as any stamp duty-free transfers. There is a second charge of 10% on the value of any property over the first £225,000, and all other values are subject to tax at 12%. Stamp duty is not payable on the first £125,000 of a property’s value. Stamp duty-free transfers include any interest in land, shares in a company, or shares in property development. Stamp duty-free land has land that is the subject of a land lease.

Do changes to stamp duty rules affect the property market?

Changes to stamp duty rules have had a mixed effect on the property market. In some areas, house prices have increased due to stamp duty changes, while in other areas, property prices have not changed. It’s important to consult with a real estate agent if you’re thinking of buying or selling a property.


SDLT is a tax you pay when purchasing residential or commercial property in the UK. It is a duty charged on the property’s price, not the purchase price. The duty is calculated as a percentage of the purchase price and is payable by the buyer.

SDLT is payable by the buyer of residential property and land, regardless of whether the buyer is the legal owner. SDLT is also payable by the purchaser of land where buildings are to be erected or where any alteration, extension or improvement to the land is to be carried out. Stamp duty land tax (SDLT) is also payable on the transfer.

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