What is stamp duty land tax?
Answered 11 March 2026
Here is a comprehensive answer based on the available sources:
What is Stamp Duty Land Tax (SDLT)?
What the law says
Stamp Duty Land Tax is a tax on land transactions in England (and formerly Wales and Scotland). The primary legislation is Part 4 of the Finance Act 2003 (FA 2003).
- Stamp duty is now chargeable only on instruments relating to stock or marketable securities; for land transactions, SDLT replaced it.
- A "land transaction" is defined in FA 2003, s.43(1), and a "purchaser" is defined in FA 2003, s.43(4).
- The tax applies to transactions with an effective date on or after the implementation date.
- The chargeable consideration for SDLT purposes includes any VAT that is chargeable on the transaction.
- Stamp duty and SDLT are mutually exclusive: an instrument effecting a land transaction is not subject to Stamp Duty if the transaction is an SDLT transaction, and if a conveyance is within the charge to Stamp Duty, there is no charge to SDLT.
HMRC guidance / practice
- SDLT was introduced on 1 December 2003 and replaced Stamp Duty for transactions involving interests in land.
- The basic rule is that if an instrument transferring an interest in land is dated on or after 1 December 2003, it falls within the SDLT regime.
- Important geographical limitations: from April 2015, Land and Buildings Transaction Tax (LBTT) applies instead to Scottish land transactions; from 1 April 2018, Land Transaction Tax (LTT) applies instead to Welsh land transactions. SDLT therefore now applies only to land transactions in England and Northern Ireland.
- Transitional provisions (in Schedule 19, FA 2003) govern which regime applies where a contract was entered into before the SDLT implementation date.
- HMRC guidance covers what land transactions are within the scope of SDLT and what documents relating to land transactions remain within the scope of the old stamp duty regime.
In summary, SDLT is a tax charged on the purchase or acquisition of interests in land and property in England and Northern Ireland, introduced by the Finance Act 2003 to replace the old Stamp Duty system for land transactions.
Citation sources
Citation and commencement 1 These Regulations may be cited as the Stamp Duty Land Tax (Consequential Amendment of Enactments) Regulations 2005 and shall come into force on 11th February 2005. Amendment of the National Health Service and Community Care Act 1990 2 1 Section 61 of the National Health Service and Community Care Act 1990 (taxation: NHS bodies) is amended as follows. 2 For subsection (3) substitute— 3 In the case of a body falling within subsection (3A) below— a where any conveyance,
Stamp Duty Land Tax (SDLT) was introduced on 1 December 2003. It replaced Stamp Duty for transactions involving interests in land. The basic rule is that if an instrument transferring an interest in land is dated on or after the introduction of SDLT then it falls within the SDLT regime (from April 2015 Land and Buildings Transaction Tax applies instead to Scottish land transactions, and from 1 April 2018 Land Transaction Tax applies instead to Welsh land transactions). But if an instrument is ex
An instrument effecting a land transaction is not subject to Stamp Duty if thetransaction is a Stamp Duty Land Tax transaction by virtue of FA03/S125(5)(a). See SDLTM49600a. If a conveyance is within the charge to Stamp Duty there is no charge to Stamp Duty LandTax. See SDLTM49600b. FA03/SCH19/PARA8 makes similar provision to FA94/S240 whereby if an agreement for a lease is subject to stamp duty as in the example at SDLTM49600c is presented for stamping along with the executed lease (whether or
Part 5 Stamp duty Abolition of stamp duty except on instruments relating to stock or marketable securities 125 1 Stamp duty is chargeable under Schedule 13 of the Finance Act 1999 (c. 16) only on instruments relating to stock or marketable securities. 2 Section 12 of the Finance Act 1895 (c. 16) (collection of stamp duty in cases of property vested by Act or purchased under statutory powers) does not apply to property other than stock or marketable securities. 3 This section shall be construed a
This guidance deals with the commencement and transitional provisions concerning what land transactions are within the scope of Stamp Duty Land Tax what documents relating to land transactions remain within the scope of stamp duty
Citation, commencement and effect 1 1 These Regulations may be cited as the Stamp Duty Land Tax (Amendment to the Finance Act 2003) Regulations 2006 and shall come into force on 12th April 2006. 2 These Regulations have effect in relation to land transactions with an effective date (within the meaning of Part 4 of the Finance Act 2003) on or after the day these Regulations come into force. Amendment to the Finance Act 2003 2 Part 4 of the Finance Act 2003 is amended as follows. 3 In Schedule 4 (
The value of a transaction for Stamp Duty Land Tax purposes includes any VAT that is chargeable. Read about Stamp Duty Land Tax.