SDLTM00030 - Introduction to stamp duty land tax

Background

Stamp duty land tax, introduced in Finance Act 2003, is a charge on transactions and is designed to replace the current stamp duty on land and buildings. The tax is effective from 1 December 2003.

Further guidance on the commencement and transitional provisions can be found at SDLTM49000.

Stamp duty is over 300 years old. It is a charge on documents that transfer property and when duty is paid stamps are impressed physically on the document. Unlike modern taxes there is no provision for the tax to be collected directly from taxpayers by assessment.

Stamp duty land tax is a modern transaction tax on land transactions involving any estate, interest, right or power in or over land in the United Kingdom.

Documents evidencing land transactions effected on or after 1 December 2003 and chargeable to stamp duty land tax will no longer be physically stamped.

Documents evidencing an acquisition of land or an interest in land not chargeable to stamp duty land tax remain chargeable to stamp duty.