Difference between Stamp Duty Land Tax (SDLT) and Land Transaction Tax (LTT)

Question: I am looking to buy a substantial new property later this year. I have found one that is ideal on the Welsh Borders, but I’ve checked the Land Registry and it turns out that the land included is partly in England and partly in Wales. What does this mean for SDLT purposes?



This is what is known as a single cross-border property transaction. Wales and England have different systems of taxing land transactions, though they are similar in their mechanisms. Stamp Duty Land Tax (SDLT) applies in England, and Land Transaction Tax (LTT) in Wales. There are different rates and thresholds.

You will need to apportion the consideration between the English and Welsh parts using a “just and reasonable” method. You will then need to check the apportioned amounts against the SDLT and LTT thresholds. If either or both exceed the respective thresholds you will need to make a return in that jurisdiction. Your solicitor should be able to assist you with this, but you can also contact the Valuation Office Agency for advice on how to apportion the consideration.

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