Understanding SDLT: Lessons From The Angela Rayner Case

Understanding some of the basic principles of Stamp Duty Land Tax (SDLT) can help you avoid common pitfalls and prevent you from making the same mistake as Angela Rayner.

To support you, we have compiled answers to some of the most frequently asked questions about SDLT. Please see below:

How much SDLT should I pay?

This is a personal tax, reflecting the purchaser’s individual circumstances.

There are several rate bands for SDLT, and the tax is calculated on the part of the property purchase price falling within each band. The SDLT rates changed on 1 April 2025 and are divided into two categories for residential properties as follows:

• Standard rates – This refers to a single property. From 1 April 2025, the nil-rate threshold has been reduced from £250,000 to £125,000.

For first-time buyers, the nil‑rate threshold has also been reduced from £425,000 to £300,000. In addition, the maximum purchase price that qualifies for first‑time buyer relief has been reduced from £625,000 to £500,000. These thresholds apply to properties outside of London only.

• Additional rates - These typically come with a 5% surcharge on top of the standard SDLT rates and apply when buying a new residential property results in owning more than one home.

Please note that there are differing rates for non-residential purchases, company purchases or non-UK residents.

When must an SDLT return be submitted?

Buyers must submit their SDLT return and payment to HMRC within 14 days of completion.

The return can be filed online by a solicitor or through the SDLT1 paper return.

SDLT is not payable on all transactions, and sometimes a relief can be applied to reduce the amount due.

If a return is not submitted and the tax is not paid within 14 days, HMRC may charge penalties and interest.

Can I claim an SDLT refund?

To claim a refund, you can submit an online application or a paper form to HMRC.

You can apply for a refund of the higher rates of SDLT for additional properties if you have sold your previous primary residence, for example.

You can also apply for a refund if there is a mistake in your original calculation or if you have become eligible for a relief or exemption that was not originally claimed.

You will typically need to provide your details, the SDLT unique transaction reference number, the amount you are asking to be repaid, and the bank account details of the person who should receive the payment.

Do I need to seek specialist tax advice?

SDLT can be complex, especially when the transaction involves mixed-use properties, non-residential purchases, or multiple properties.

The case of Angela Rayner demonstrates how a simple mistake can lead to significant tax issues.

If you are unsure about your position, especially where trusts or additional properties are involved, we would recommend seeking professional tax advice. This would be in addition to seeking any legal advice. The value of seeking this advice would undoubtedly outweigh the risk of any potential penalties and consequences that may arise from an error.