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Property is a first home. Property is a buy to let or second home**Buy-to-let/second home rates are 3 percentage points above the current SDLT (Stamp Duty Land Tax) Calculate. The new non-resident stamp duty surcharge applies if: The buyer is an individual and he is considered a non-UK resident.
- Overview
- The chargeable consideration
- What’s included in the chargeable consideration
- Staged payments
- Deferred payments
Find out what transactions to include in the amount you use to work out Stamp Duty Land Tax (SDLT).
Non-monetary payment
As well as money, you can exchange property for other things such as: goods works or services release from a debt transfer of (taking on) a debt In many situations, payment may include both money and something else. For example, 2 people who own a house together, then split up — one pays the other for their share of the equity and also takes on their outstanding mortgage liability.
The chargeable consideration includes anything that is paid for assets that form part of the land or property.
These assets can include:
•buildings and structures that are part of the land (for example, farm buildings)
•fixtures and fittings, including bathroom and kitchen fittings, but not carpets, curtains or free standing furniture
•intangible assets (for example, the value of goodwill attached to the land)
•the estimated value of a commitment to do work or services (for example, a promise from the seller to repair the property)
In some transactions, the purchaser may pay part of the agreed price on transfer and the rest at some later date. This is called a ‘postponed consideration’.
For example, a business owner sells his premises to a colleague for a total of £1 million as follows:
•£700,000 now
•a further payment of £300,000 in a year’s time
In this case, SDLT is still due on the full amount of £1 million. There’s no discount or postponement of any SDLT payable because there’s a later payment.
You can find about:
Payment depending on the outcome of future events
A transaction could include an amount that the buyer will only pay if some future event happens. This is known as the ‘contingent consideration’. For example, a developer might agree to pay an extra sum, on condition that they get planning permission for redevelopment. In these cases you pay SDLT on the assumption that the contingency will happen. The buyer can apply to defer payment of SDLT on the contingent amount, but HMRC still charge the tax at the appropriate rate for the total chargeable consideration. For example, a builder buys a plot for £400,000 and agrees to pay a further £200,000 if he gets planning permission for a new building. He can apply for deferment on SDLT on the conditional £200,000 but will pay SDLT on the initial payment now. Once the deferred sum becomes due the original £400,000 will be linked to the deferred £200,000. The SDLT is worked out by: Applying the appropriate rate at the time of the original purchase to the total consideration of £600,000. Reducing this sum by the tax paid initially on the £400,000.
Payment depending on uncertain future events
Some transactions may include a later payment which depends on an unknown variable. This is known as the ‘uncertain or unascertained consideration’. For example, future payments based on the turnover of a business. In these cases, calculate the SDLT on the basis of a ‘just and reasonable estimate’ of the amount involved. The buyer can apply to defer payment of the uncertain or unascertainable part. Otherwise, make an appropriate adjustment when the amount of consideration is certain. Published Last updated 26 October 2022 + show all updates 13 March 2013 Print this page Contents
You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay. The value you pay SDLT on (the ‘consideration’)
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Our Stamp Duty calculator lets you know the amount of tax you'll be liable to pay. It’ll work out how much Stamp Duty you’ll owe, whether you’re a first-time buyer, moving home, or buying an additional property.
