If you are moving house for the first time in a while, or even buying your first home, you may be surprised to receive our standard Stamp Duty Land Tax (SDLT) questionnaire.

Not very long ago, your conveyancer would calculate your SDLT liability on your purchase as soon as you told them the price.  Those days are gone.

Now, the SDLT payable on your purchase depends on much more than the property price alone.

SDLT liability – what does it depend on?

As mentioned, the SDLT payable on property purchases now depends on more than price alone, including:

  • Whether you own, or have ever owned an interest in another dwelling
  • Whether and when you lived there
  • How you acquired it
  • Whether, and when you sold or will sell it
  • Whether you are buying the property to live in or to let
  • An explanation on why you are buying a UK home if you do not currently live here
  • Whether you have any plans to leave the UK if you currently live here

Buying with a partner?

If you are buying with a partner, they have to answer all the same questions and you both face additional questions about your relationship, such as whether you have been living together and your marital status. Whether you are happy in the relationship isn’t one of the questions asked, however if you are buying without your spouse, the reason why may be relevant to the SDLT due.

Perhaps because your purchase is a buy-to-let, or for other reasons, you are buying through a company, which raises a different set of questions, and will likely mean higher SDLT than buying in your own name.

What was the property used for?

The nature of your new property and how it has been used by the sellers is also important:

  • Is it a single home or is there a subsidiary dwelling?
  • Has there been any other use, e.g. a ground floor shop, or, for a country home?
  • Does it include any commercially let or used land or outhouses?

The answers to all these questions, and often more because some answers prompt further questions, are relevant to the calculation of the SDLT due on your purchase.

How we can help

It is important that when faced with the SDLT Questionnaire, you answer the questions as fully and accurately as possible to enable us to calculate your SDLT liability on your purchase. This will enable us to be sure that you do not overpay on SDLT and, if you wish, to advise you on steps you may consider in order to mitigate your SDLT liability. For couples, it has even been known to save thousands of pounds in SDLT by accelerating their marriage plans.

If you would like to know more about our advisory services surrounding SDLT and the tax implications of property purchases, please fill in our form below or speak to:

Picture of Paul White

Paul White

Partner - Tax

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