Stamp Taxes

At Stratos, we provide expert guidance to help you understand and manage your obligations, whether you’re purchasing property, transferring shares, or handling corporate transactions.

Our team ensures you’re not only compliant but also making the most of available reliefs and exemptions, helping you reduce risk and avoid costly mistakes.

Stamp Duty Land Tax (“SDLT”)

SDLT is payable on the purchase of land or property in England and Northern Wales. Whether you’re a first time buyer, property investor or business acquiring commercial property, understanding the SDLT implications of the transaction is very important.

SDLT rates vary depending on the type of property i.e. residential or commercial, the purchase price and your buyer status i.e. individual, company or additional property owner.

• 5% Surcharge: Companies and individuals with interests in multiple residential properties may face an extra 5% SDLT surcharge.
• 2% Surcharge: Non-UK Residents must pay an additional 2% charge when purchasing UK residential property.

Residential vs Commercial: SDLT rates differ for residential and commercial properties.

Mixed-Use Properties: These are typically taxed at the (lower) commercial rates.

The tax is paid by the buyer and must be reported to HMRC within 14 days of completion. The return should include (among other things) the details of the property(ies) involved, details of the buyer(s) and their agent, details of the vendor(s) and their agent, and the SDLT due.

From 1 April 2025, the SDLT residential rates (before surcharges) are as follows:

Property Value	SDLT Rate
Up to £125,000	0%
From £125,001 to £250,000	2%
From £250,001 to £925,000	5%>
From £925,001 to £1.5m	10%
Above £1.5m	12%

The non-residential rates by comparison are much lower and as follows:

Property Value	SDLT Rate
Up to £150,000	0%
From £150,001 to £250,000	2%
Above £250,000	5%

Stamp Duty (“SD”)

SD is levied on certain legal documents, most commonly those that transfer shares or securities. The liability is payable by the purchaser of the shares/securities.

SD only applies if the documents were signed in the UK or, if signed outside the UK, they relate to property in the UK.

The standard rate of SD is 0.5% (rounded to the nearest £5) but it is not payable when the consideration for the shares/securities is less than £1,000.

Note that in rare occasions, the rate of SD may be 1.5% for certain depositary receipt schemes or clearance services.

SD should be paid within 30 days of the transfer documents being signed. Late payment can result in penalties and interest.

Stamp Duty Reserve Tax (“SDRT”)

SDRT catches certain transactions that are outside the scope of SD.

SDRT is levied on an agreement to transfer chargeable securities, such as uncertified shares in electronic systems such as CREST or shares which do not require an instrument or document to complete the transaction.

The rate of SDRT is generally 0.5%, but certain transactions may attract a rate of 1.5%. Note that, unlike SD rates, SDRT is rounded to the nearest penny.

Unlike SD, which applies to documents, SDRT is charged on the agreement itself, making it especially relevant for modern, paperless share transactions.

Why Stratos?

At Stratos, we take the time to understand your goals – whether you’re buying, selling, or holding property within a business structure. We’ll guide you through the key tax considerations, from Income and Capital Gains Tax, Stamp Duty Land Tax and Capital Allowances to VAT and Annual Tax on Enveloped Dwellings (ATED).

Our advice is practical, clear, and tailored to your circumstances – so you can move forward with confidence, knowing your property transactions are structured efficiently and fully compliant.