Stamp Duty Land Tax (SDLT) in the UK is typically paid when you purchase a property or land over a certain price in England and Northern Ireland. Here’s a breakdown of when you need to pay it:
1. Property Purchase
- Residential Properties: You pay SDLT when you buy a residential property costing more than £250,000 (as of the latest thresholds). First-time buyers can benefit from a higher threshold of £425,000.
- Non-Residential and Mixed-Use Properties: For non-residential or mixed-use properties, SDLT is due if the purchase price is over £150,000.
2. Timing of Payment
- After Completion: You must pay the SDLT within 14 days of the completion date of the purchase. Completion is the point at which the property ownership officially changes hands, and you receive the keys.
- Filing the Return: Even if no SDLT is due, you must still file an SDLT return within 14 days of completion.
3. Lease Premiums or Transfers
- If you buy a new or existing leasehold, you may need to pay SDLT on the purchase price of the lease. This is particularly relevant if the lease is long-term.
4. Exceptions and Reliefs
- Certain transactions may be exempt from SDLT or eligible for reliefs, such as transfers of property in cases of divorce, inheritance, or gifts.
If you’re buying a property, it’s important to account for SDLT in your budget and make sure the payment is made on time to avoid penalties.