Stamp Duty Land Tax (SDLT) is a tax paid by the buyer on land and property transactions in England and Northern Ireland. It is often shortened to “stamp duty”. Scotland and Wales have their own equivalent taxes: Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales.
SDLT applies to both residential and non-residential property, including commercial premises and development land, and is charged in bands on the portion of the price that falls within each band. Higher rates apply in some cases, for example when buying an additional residential property, while first-time buyers may qualify for relief. Thresholds and rates change from time to time, so always check the current figures on GOV.UK. For quantity surveyors and developers, SDLT matters because:
- it is a significant acquisition cost in a development appraisal
- it sits outside the building works estimate, so it is not normally part of the construction cost plan
Related terms: development appraisal, land acquisition costs, residual valuation.
