What is SDLT?

By Sarah Hailes

Stamp Duty Land Tax (SDLT) is usually paid when property or land is purchased or transferred in the UK. The amount that is paid for the property will establish how much, if any SDLT is to be paid. The value however, can vary depending on whether the property is residential, freehold, leasehold. Some other factors may also be taken into consideration when determining the SDLT. Generally SDLT is charged as a percentage of the purchase price when the property or land is purchased or transferred, which higher percentage SDLT rates being charged to transactions of higher value. There are some properties which may either be exempt from SDLT or the amount of SDLT payable may be reduced.

SDLT is charged based upon the value of the property or land’s ‘chargeable consideration’. The property or land’s chargeable consideration includes the economic value of what was given in exchange for property, such as the transfer of an existing mortgage, payment of money, provision of services as well as the payment of money.

Usually it is simple to calculate the SDLT on the purchase of a residential property as the chargeable consideration will be the property’s purchase price minus the value of any extras within the property which would not be classed as fixtures and fittings .i.e. furniture. It is then possible to apply the purchase price established to the correct SDLT threshold and rate. Unfortunately, calculating the SDLT on other transactions can be more complicated as the chargeable consideration can vary depending property factors such as whether it is freehold or leasehold and therefore it is important that the SDLT is worked out correctly.

For more information please visit EHL’s website here

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EdwardHandsandLewis

www.ehlsolicitors.co.uk Edward Hands & Lewis is a firm that has evolved over time with a commitment to its core values. We have never forgotten that we are here because of our clients who have supported us over many years. We are proud to be at the heart of the communities in which we serve and we are equally proud of the team that we have to provide such service. We aim to provide value for money with a commitment to good, clear and concise advice. We take the time to ensure that our advice and assistance matches your goals. Unlike many professional services organisations, brevity and helpfulness are our watchwords. The agile and creative minds of the people we employ equip them to advise the same client on a diverse range of matters. This multi-specialism makes our lawyers and advisors expert on a range of the legal and other issues affecting their clients’ business. The strength and depth of our client relationships avoids wasted time and cost: it enables us to keep up to speed on business and sectoral developments and there is no need to field large teams of experts as a matter of course. While we have been established for many years, we pride ourselves on forward-thinking and believe we have achieved the right blend between traditional and modern. Whether you are an existing client of ours, are about to become a client or are looking to join us, we sincerely hope that your experience is a positive one.

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