I live in Brighton, England and have just had an offer to purchase my first home, in a nearby village, accepted by the seller. We expect to exchange contracts on August 23rd 2020, for an agreed price of £390,000. How much SDLT should I expect to pay, as a first time buyer?

You can claim a discount (relief) if you buy your first home before 8 July 2020 or from 1 July 2021. This means you’ll pay:

Stamp Duty Land Tax

Overview

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

The tax is different if the property or land is in:

Scotland - pay Land and Buildings Transaction Tax

Wales - pay Land Transaction Tax if the sale was completed on or after 1 April 2018

You pay the tax when you:

buy a freehold property

buy a new or existing leasehold

buy a property through a shared ownership scheme

are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house

Thresholds

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.

The current SDLT threshold for residential properties is £500,000. This changes on 1 July 2021.

The threshold for non-residential land and properties is £150,000.

Property purchases from 1 July 2021 to 30 September 2021

The SDLT thresholds will be:

£250,000 for residential properties

£150,000 for non-residential land and properties

The threshold for residential properties will change on 1 October 2021.

Property purchases from 1 October 2021

The SDLT thresholds will be:

£125,000 for residential properties

These thresholds are the same as they were before 8 July 2020.

First-time buyers

From 1 July 2021, you’ll get a discount (relief) that means you’ll pay less or no tax if both the following apply:

you, and anyone else you’re buying with, are first-time buyers

the purchase price is £500,000 or less

You’ll also be eligible for this discount if you bought your first home before 8 July 2020.

How much you pay

How much you pay depends on whether the land or property is residential or non-residential or mixed-use.

If you’re buying a residential property there are different rates of SDLT if:

you’re a first-time buyer

you already own a property and you’re buying an additional property

you’re not a UK resident

You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.

You may be able to reduce the amount of tax you pay by claiming relief, such as if you’re a first-time buyer or purchasing more than one property (‘multiple dwellings’).

The value you pay SDLT on (the ‘consideration’)

The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

goods

works or services

release from a debt

transfer of a debt, including the value of any outstanding mortgage

Find out how to work out the consideration if your situation is complicated.

How and when to pay

You must send an SDLT return to HMRC and pay the tax within 14 days of completion.

If you have a solicitor, agent or conveyancer, they’ll usually file your return and pay the tax on your behalf on the day of completion and add the amount to their fees. They’ll also claim any relief you’re eligible for, such as if you’re a first-time buyer.

If they do not do this for you, you can file a return and pay the tax yourself.

There are certain situations where you do not need to send a return.

You may be charged penalties and interest if you do not file your return and make your payment within 14 days of completion.

Residential property rates

You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price when you buy residential property, for example a house or flat. SDLT only applies to properties over a certain value.

The amount you pay depends on:

when you bought the property

how much you paid for it

Use the SDLT calculator to work out how much tax you’ll pay.

You must send an SDLT return if you pay more than £40,000 for a property - even if there’s no SDLT due. There are some exemptions.

Rates from 8 July 2020 to 30 June 2021

You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).

Property or lease premium or transfer value | SDLT rate

Up to £500,000 | Zero

The next £425,000 (the portion from £500,001 to £925,000) | 5%

The next £575,000 (the portion from £925,001 to £1.5 million) | 10%

The remaining amount (the portion above £1.5 million) | 12%

Rates from 1 July 2021 to 30 September 2021

Up to £250,000 | Zero

The next £675,000 (the portion from £250,001 to £925,000) | 5%

Rates from 1 October 2021

These rates also apply if you bought a property before 8 July 2020.

Up to £125,000 | Zero

The next £125,000 (the portion from £125,001 to £250,000) | 2%

If you’re buying your first home

You can claim a discount (relief) if you buy your first home before 8 July 2020 or from 1 July 2021. This means you’ll pay:

no SDLT up to £300,000

5% SDLT on the portion from £300,001 to £500,000

You’re eligible if you and anyone else you’re buying with are first-time buyers.

If the price is over £500,000, you follow the rules for people who’ve bought a home before.

New leasehold sales and transfers

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

If the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold), you’ll pay SDLT at 1% on the portion of net present value over:

£500,000 for purchases from 8 July 2020 to 30 June 2021

£250,000 for purchases from 1 July 2021 to 30 September 2021

£125,000 for purchases from 1 October 2021

This does not apply to existing (‘assigned’) leases.

You can work out how much SDLT you’ll pay for your new residential lease using HMRC’s:

SDLT calculator

guidance on leasehold purchases

Higher rates for additional properties

You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.

Use the SDLT calculator to work out how much tax you’ll pay.

You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.

If you’re replacing your main residence

You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties.

You can apply for a refund if you sell your previous main home within 36 months.

There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland.

If it takes longer than 36 months to sell your previous main home

You may still be able to get a refund of the extra 3% SDLT if:

you purchased your new home on or after 1 January 2017

the delay was outside your control, for example because of coronavirus (COVID-19) or a public authority blocking the sale

you have now sold your old home

To claim a refund, write to HMRC and explain why the sale took longer than 36 months.

Include:

your details

details of the main buyer - if different to your own

details of the property where higher rate SDLT was paid - including the address, date of purchase and SDLT unique transaction reference number

details of the previous main residence - including the address, date of sale and SDLT unique transaction reference number

the amount of higher rate SDLT paid

the amount of tax you’re asking for a repayment of

a bank account and sort code for the person receiving the payment

Rates if you’re not a UK resident

If you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are ‘not a UK resident’ for the purposes of SDLT.

You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland on or after 1 April 2021.

You may not have to pay a surcharge on certain properties, transactions or if you’re a particular type of buyer. Check the rules on who has to pay the surcharge, when you do not have to pay, and if you can claim relief.

If you have to pay the surcharge, you’ll also have to pay any other rates of SDLT that apply, for example:

if you already own a property and you’re buying an additional property

if you’re a first-time buyer

Use the SDLT calculator to work out how much tax you’ll pay.

Special rates

There are different SDLT rules and rate calculations for:

corporate bodies

people buying 6 or more residential properties in one transaction

shared ownership properties

multiple purchases or transfers between the same buyer and seller (‘linked purchases’)

purchases that mean you own more than one property

companies and trusts buying residential property

Rates for non-residential and mixed land and property

You pay SDLT on increasing portions of the property price (or ‘consideration’) when you pay £150,000 or more for non-residential or mixed (also known as ‘mixed use’) land or property.

You must still send an SDLT return for most transactions under £150,000.

Non-residential property includes:

commercial property, for example shops or offices

property that isn’t suitable to be lived in

forests

agricultural land that’s part of a working farm or used for agricultural reasons

any other land or property that is not part of a dwelling’s garden or grounds

6 or more residential properties bought in a single transaction

You pay residential SDLT rates on agricultural land if it’s sold as part of the garden or grounds of a dwelling, for example a cottage with fields.

A ‘mixed’ property is one that has both residential and non-residential elements, for example a flat connected to a shop, doctor’s surgery or office.

Freehold sales and transfers

You can also use this table to work out the SDLT rate for a lease premium.

Property or lease premium or transfer value | SDLT rate

Up to £150,000 | Zero

The next £100,000 (the portion from £150,001 to £250,000) | 2%

The remaining amount (the portion above £250,000) | 5%

New leasehold sales and transfers

When you buy a new non-residential or mixed leasehold you pay SDLT on both the:

purchase price of the lease (the ‘lease premium’) using the rates above

value of the annual rent you pay (the ‘net present value’)

These are calculated separately then added together.

If you buy an existing (‘assigned’) lease, you only pay SDLT on the lease price (or ‘consideration’).

The net present value (NPV) is based on the total rent over the life of the lease. You do not pay SDLT on the rent if the NPV is less than £150,000.

Net present value of rent | SDLT rate

£0 to £150,000 | Zero

The portion from £150,001 to £5,000,000 | 1%

The portion above £5,000,000 | 2%

How much you’ll pay

You can work out how much SDLT you’ll pay for your non-residential lease using HM Revenue and Customs’ (HMRC):

SDLT calculator

guidance on buying leasehold properties

You may pay a higher rate of SDLT for multiple purchases or transfers from the same seller.

Using previous SDLT rates

You may qualify for previous SDLT rates if you exchanged contracts before 17 March 2016 but completed on or after that date.

If you qualify for the previous rates, you can choose to pay SDLT using the current or previous rates.

Use HMRC’s SDLT calculator to work out if you qualify and how much you’ll pay using both rates.

Enter the figure for the rate you choose in your SDLT return.

Land and property transfers

You may have to pay Stamp Duty Land Tax (SDLT) if the ownership of land or property is transferred to you in exchange for any payment or ‘consideration’.

The rules around SDLT depend on the specific circumstances surrounding the transfer.

HM Revenue and Customs (HMRC) has guidance on transfers:

as a result of marriage, civil partnerships or moving in together

on divorce, separation or the end of a civil partnership

of jointly owned property or land

if the larger share is given as a gift

given as a gift or left in a will

to or from a company

Shared ownership property

You may have to pay Stamp Duty Land Tax (SDLT) when you buy a property through a shared ownership scheme run by an approved public body.

This includes:

local housing authorities

housing associations

housing action trusts

the Northern Ireland Housing Executive

the Commission for the New Towns

development corporations

You can choose to either:

make a one-off payment based on the market value of the property (‘market value election’)

pay SDLT in stages

Market value election

Submit a return and pay SDLT at the residential rate. Use the total market value of the property to calculate how much to pay - even if you’re only buying a share.

You do not pay any more SDLT after this, even if you buy a bigger share in the property later on.

HM Revenue and Customs (HMRC) has guidance on SDLT if you do not have the right to the freehold.

Paying in stages

You make your first SDLT payment on the price you pay for the lease (the ‘lease premium’) if it’s above the SDLT threshold. If the lease premium is below the threshold, you do not pay SDLT at this point - but you still have to submit a return.

You may have to pay extra SDLT if the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold.

Work this out on HMRC’s SDLT calculator. You pay SDLT of 1% on the amount over the threshold - add this to any SDLT you’re paying on the lease premium.

SDLT if you buy more shares

If you buy any more shares in the property, you do not have to pay any more SDLT or send a return to HMRC until you own more than an 80% share.

Once your share of the property goes over 80% you must send a return and pay SDLT on:

the transaction that took you over 80%

any transactions after that

Calculating your SDLT

To work out the SDLT if you buy more shares that take you over 80%:

Work out the SDLT due on the total you’ve paid for the property to date - include any amounts you did not pay tax on. Use the SDLT rate that applies at the time you bought the new share. For example, if your total purchases before 8 July 2020 were £160,000, the SDLT due would be £700.

Divide the amount you’re paying for this share by the total amount you’ve paid for the property to date. For example, if you’re paying £40,000 for this share, divide £40,000 by £160,000 = 0.25.

Multiply the two figures, for example SDLT of £700 multiplied by 0.25 = £175. This is the amount you would need to pay in SDLT for this share.

If you’ve paid less than £500,000 for your property between 8 July 2020 and 30 June 2021, or less than £250,000 between 1 July 2021 and 30 September 2021, the amount of SDLT you’d need to pay on any additional shares would be zero. This is because of the temporary SDLT rate.

Additional tax if payments are linked

You may have to pay extra SDLT on previous shares if they become ‘linked’ to later shares. Shares only become linked once you own over 80% of the property.

You can read more about paying SDLT when you buy more shares.

Reliefs and exemptions

You may be eligible for Stamp Duty Land Tax (SDLT) reliefs if you’re buying your first home and in certain other situations. These reliefs can reduce the amount of tax you pay.

You must complete an SDLT return to claim relief, even if no tax is due.

HM Revenue and Customs (HMRC) has guidance on SDLT reliefs for:

first-time buyers

multiple dwellings

building companies buying an individual’s home

employers buying an employee’s house

local authorities making compulsory purchases

property developers providing amenities to communities

companies transferring property to another company

charities

right to buy properties

registered social landlords

Crown employees

Exemptions

You do not have to pay SDLT or file a return if:

no money or other payment changes hands for a land or property transfer

property is left to you in a will

property is transferred because of divorce or dissolution of a civil partnership

you buy a freehold property for less than £40,000

you buy a new or assigned lease of 7 years or more, as long as the premium is less than £40,000 and the annual rent is less than £1,000

you buy a new or assigned lease of less than 7 years, as long as the amount you pay is less than the residential or non-residential SDLT threshold

you use alternative property financial arrangements, for example to comply with Sharia law

Read HMRC’s guidance on transactions that do not need a return.

no SDLT up to £300,000

Stamp Duty Land Tax

Overview

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

The tax is different if the property or land is in:

Scotland - pay Land and Buildings Transaction Tax

Wales - pay Land Transaction Tax if the sale was completed on or after 1 April 2018

You pay the tax when you:

buy a freehold property

buy a new or existing leasehold

buy a property through a shared ownership scheme

are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house

Thresholds

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.

The current SDLT threshold for residential properties is £500,000. This changes on 1 July 2021.

The threshold for non-residential land and properties is £150,000.

Property purchases from 1 July 2021 to 30 September 2021

The SDLT thresholds will be:

£250,000 for residential properties

£150,000 for non-residential land and properties

The threshold for residential properties will change on 1 October 2021.

Property purchases from 1 October 2021

The SDLT thresholds will be:

£125,000 for residential properties

These thresholds are the same as they were before 8 July 2020.

First-time buyers

From 1 July 2021, you’ll get a discount (relief) that means you’ll pay less or no tax if both the following apply:

you, and anyone else you’re buying with, are first-time buyers

the purchase price is £500,000 or less

You’ll also be eligible for this discount if you bought your first home before 8 July 2020.

How much you pay

How much you pay depends on whether the land or property is residential or non-residential or mixed-use.

If you’re buying a residential property there are different rates of SDLT if:

you’re a first-time buyer

you already own a property and you’re buying an additional property

you’re not a UK resident

You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.

The value you pay SDLT on (the ‘consideration’)

The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

goods

works or services

release from a debt

transfer of a debt, including the value of any outstanding mortgage

Find out how to work out the consideration if your situation is complicated.

How and when to pay

You must send an SDLT return to HMRC and pay the tax within 14 days of completion.

If they do not do this for you, you can file a return and pay the tax yourself.

There are certain situations where you do not need to send a return.

You may be charged penalties and interest if you do not file your return and make your payment within 14 days of completion.

Residential property rates

The amount you pay depends on:

when you bought the property

how much you paid for it

Use the SDLT calculator to work out how much tax you’ll pay.

You must send an SDLT return if you pay more than £40,000 for a property - even if there’s no SDLT due. There are some exemptions.

Rates from 8 July 2020 to 30 June 2021

You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).

Property or lease premium or transfer value | SDLT rate

Up to £500,000 | Zero

The next £425,000 (the portion from £500,001 to £925,000) | 5%

The next £575,000 (the portion from £925,001 to £1.5 million) | 10%

The remaining amount (the portion above £1.5 million) | 12%

Rates from 1 July 2021 to 30 September 2021

Up to £250,000 | Zero

The next £675,000 (the portion from £250,001 to £925,000) | 5%

Rates from 1 October 2021

These rates also apply if you bought a property before 8 July 2020.

Up to £125,000 | Zero

The next £125,000 (the portion from £125,001 to £250,000) | 2%

If you’re buying your first home

You can claim a discount (relief) if you buy your first home before 8 July 2020 or from 1 July 2021. This means you’ll pay:

no SDLT up to £300,000

5% SDLT on the portion from £300,001 to £500,000

You’re eligible if you and anyone else you’re buying with are first-time buyers.

If the price is over £500,000, you follow the rules for people who’ve bought a home before.

New leasehold sales and transfers

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

£500,000 for purchases from 8 July 2020 to 30 June 2021

£250,000 for purchases from 1 July 2021 to 30 September 2021

£125,000 for purchases from 1 October 2021

This does not apply to existing (‘assigned’) leases.

You can work out how much SDLT you’ll pay for your new residential lease using HMRC’s:

SDLT calculator

guidance on leasehold purchases

Higher rates for additional properties

You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.

Use the SDLT calculator to work out how much tax you’ll pay.

You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.

If you’re replacing your main residence

You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

You can apply for a refund if you sell your previous main home within 36 months.

There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland.

If it takes longer than 36 months to sell your previous main home

You may still be able to get a refund of the extra 3% SDLT if:

you purchased your new home on or after 1 January 2017

the delay was outside your control, for example because of coronavirus (COVID-19) or a public authority blocking the sale

you have now sold your old home

To claim a refund, write to HMRC and explain why the sale took longer than 36 months.

Include:

your details

details of the main buyer - if different to your own

details of the property where higher rate SDLT was paid - including the address, date of purchase and SDLT unique transaction reference number

details of the previous main residence - including the address, date of sale and SDLT unique transaction reference number

the amount of higher rate SDLT paid

the amount of tax you’re asking for a repayment of

a bank account and sort code for the person receiving the payment

Rates if you’re not a UK resident

You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland on or after 1 April 2021.

If you have to pay the surcharge, you’ll also have to pay any other rates of SDLT that apply, for example:

if you already own a property and you’re buying an additional property

if you’re a first-time buyer

Use the SDLT calculator to work out how much tax you’ll pay.

Special rates

There are different SDLT rules and rate calculations for:

corporate bodies

people buying 6 or more residential properties in one transaction

shared ownership properties

multiple purchases or transfers between the same buyer and seller (‘linked purchases’)

purchases that mean you own more than one property

companies and trusts buying residential property

Rates for non-residential and mixed land and property

You must still send an SDLT return for most transactions under £150,000.

Non-residential property includes:

commercial property, for example shops or offices

property that isn’t suitable to be lived in

forests

agricultural land that’s part of a working farm or used for agricultural reasons

any other land or property that is not part of a dwelling’s garden or grounds

6 or more residential properties bought in a single transaction

Freehold sales and transfers

You can also use this table to work out the SDLT rate for a lease premium.

Property or lease premium or transfer value | SDLT rate

Up to £150,000 | Zero

The next £100,000 (the portion from £150,001 to £250,000) | 2%

The remaining amount (the portion above £250,000) | 5%

New leasehold sales and transfers

When you buy a new non-residential or mixed leasehold you pay SDLT on both the:

purchase price of the lease (the ‘lease premium’) using the rates above

value of the annual rent you pay (the ‘net present value’)

These are calculated separately then added together.

If you buy an existing (‘assigned’) lease, you only pay SDLT on the lease price (or ‘consideration’).

Net present value of rent | SDLT rate

£0 to £150,000 | Zero

The portion from £150,001 to £5,000,000 | 1%

The portion above £5,000,000 | 2%

How much you’ll pay

You can work out how much SDLT you’ll pay for your non-residential lease using HM Revenue and Customs’ (HMRC):

SDLT calculator

guidance on buying leasehold properties

You may pay a higher rate of SDLT for multiple purchases or transfers from the same seller.

Using previous SDLT rates

You may qualify for previous SDLT rates if you exchanged contracts before 17 March 2016 but completed on or after that date.

If you qualify for the previous rates, you can choose to pay SDLT using the current or previous rates.

Use HMRC’s SDLT calculator to work out if you qualify and how much you’ll pay using both rates.

Enter the figure for the rate you choose in your SDLT return.

Land and property transfers

The rules around SDLT depend on the specific circumstances surrounding the transfer.

HM Revenue and Customs (HMRC) has guidance on transfers:

as a result of marriage, civil partnerships or moving in together

on divorce, separation or the end of a civil partnership

of jointly owned property or land

if the larger share is given as a gift

given as a gift or left in a will

to or from a company

Shared ownership property

You may have to pay Stamp Duty Land Tax (SDLT) when you buy a property through a shared ownership scheme run by an approved public body.

This includes:

local housing authorities

housing associations

housing action trusts

the Northern Ireland Housing Executive

the Commission for the New Towns

development corporations

You can choose to either:

make a one-off payment based on the market value of the property (‘market value election’)

pay SDLT in stages

Market value election

You do not pay any more SDLT after this, even if you buy a bigger share in the property later on.

HM Revenue and Customs (HMRC) has guidance on SDLT if you do not have the right to the freehold.

Paying in stages

You may have to pay extra SDLT if the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold.

SDLT if you buy more shares

If you buy any more shares in the property, you do not have to pay any more SDLT or send a return to HMRC until you own more than an 80% share.

Once your share of the property goes over 80% you must send a return and pay SDLT on:

the transaction that took you over 80%

any transactions after that

Calculating your SDLT

To work out the SDLT if you buy more shares that take you over 80%:

Multiply the two figures, for example SDLT of £700 multiplied by 0.25 = £175. This is the amount you would need to pay in SDLT for this share.

Additional tax if payments are linked

You can read more about paying SDLT when you buy more shares.

Reliefs and exemptions

You must complete an SDLT return to claim relief, even if no tax is due.

HM Revenue and Customs (HMRC) has guidance on SDLT reliefs for:

first-time buyers

multiple dwellings

building companies buying an individual’s home

employers buying an employee’s house

local authorities making compulsory purchases

property developers providing amenities to communities

companies transferring property to another company

charities

right to buy properties

registered social landlords

Crown employees

Exemptions

You do not have to pay SDLT or file a return if:

no money or other payment changes hands for a land or property transfer

property is left to you in a will

property is transferred because of divorce or dissolution of a civil partnership

you buy a freehold property for less than £40,000

you buy a new or assigned lease of 7 years or more, as long as the premium is less than £40,000 and the annual rent is less than £1,000

you use alternative property financial arrangements, for example to comply with Sharia law

Read HMRC’s guidance on transactions that do not need a return.

5% SDLT on the portion from £300,001 to £500,000

Stamp Duty Land Tax

Overview

You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.

The tax is different if the property or land is in:

Scotland - pay Land and Buildings Transaction Tax

Wales - pay Land Transaction Tax if the sale was completed on or after 1 April 2018

You pay the tax when you:

buy a freehold property

buy a new or existing leasehold

buy a property through a shared ownership scheme

are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house

Thresholds

The threshold is where SDLT starts to apply. If you buy a property for less than the threshold, there’s no SDLT to pay.

The current SDLT threshold for residential properties is £500,000. This changes on 1 July 2021.

The threshold for non-residential land and properties is £150,000.

Property purchases from 1 July 2021 to 30 September 2021

The SDLT thresholds will be:

£250,000 for residential properties

£150,000 for non-residential land and properties

The threshold for residential properties will change on 1 October 2021.

Property purchases from 1 October 2021

The SDLT thresholds will be:

£125,000 for residential properties

These thresholds are the same as they were before 8 July 2020.

First-time buyers

From 1 July 2021, you’ll get a discount (relief) that means you’ll pay less or no tax if both the following apply:

you, and anyone else you’re buying with, are first-time buyers

the purchase price is £500,000 or less

You’ll also be eligible for this discount if you bought your first home before 8 July 2020.

How much you pay

How much you pay depends on whether the land or property is residential or non-residential or mixed-use.

If you’re buying a residential property there are different rates of SDLT if:

you’re a first-time buyer

you already own a property and you’re buying an additional property

you’re not a UK resident

You can use HM Revenue and Customs’ (HMRC) Stamp Duty Land Tax calculator to work out how much tax you’ll pay.

The value you pay SDLT on (the ‘consideration’)

The total value you pay SDLT on (sometimes called the ‘consideration’) is usually the price you pay for the property or land.

Sometimes it might include another type of payment like:

goods

works or services

release from a debt

transfer of a debt, including the value of any outstanding mortgage

Find out how to work out the consideration if your situation is complicated.

How and when to pay

You must send an SDLT return to HMRC and pay the tax within 14 days of completion.

If they do not do this for you, you can file a return and pay the tax yourself.

There are certain situations where you do not need to send a return.

You may be charged penalties and interest if you do not file your return and make your payment within 14 days of completion.

Residential property rates

The amount you pay depends on:

when you bought the property

how much you paid for it

Use the SDLT calculator to work out how much tax you’ll pay.

You must send an SDLT return if you pay more than £40,000 for a property - even if there’s no SDLT due. There are some exemptions.

Rates from 8 July 2020 to 30 June 2021

You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).

Property or lease premium or transfer value | SDLT rate

Up to £500,000 | Zero

The next £425,000 (the portion from £500,001 to £925,000) | 5%

The next £575,000 (the portion from £925,001 to £1.5 million) | 10%

The remaining amount (the portion above £1.5 million) | 12%

Rates from 1 July 2021 to 30 September 2021

Up to £250,000 | Zero

The next £675,000 (the portion from £250,001 to £925,000) | 5%

Rates from 1 October 2021

These rates also apply if you bought a property before 8 July 2020.

Up to £125,000 | Zero

The next £125,000 (the portion from £125,001 to £250,000) | 2%

If you’re buying your first home

You can claim a discount (relief) if you buy your first home before 8 July 2020 or from 1 July 2021. This means you’ll pay:

no SDLT up to £300,000

5% SDLT on the portion from £300,001 to £500,000

You’re eligible if you and anyone else you’re buying with are first-time buyers.

If the price is over £500,000, you follow the rules for people who’ve bought a home before.

New leasehold sales and transfers

When you buy a new residential leasehold property you pay SDLT on the purchase price of the lease (the ‘lease premium’) using the rates above.

£500,000 for purchases from 8 July 2020 to 30 June 2021

£250,000 for purchases from 1 July 2021 to 30 September 2021

£125,000 for purchases from 1 October 2021

This does not apply to existing (‘assigned’) leases.

You can work out how much SDLT you’ll pay for your new residential lease using HMRC’s:

SDLT calculator

guidance on leasehold purchases

Higher rates for additional properties

You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.

Use the SDLT calculator to work out how much tax you’ll pay.

You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.

If you’re replacing your main residence

You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

You can apply for a refund if you sell your previous main home within 36 months.

There are special rules if you own property with someone else or already own a property outside England, Wales and Northern Ireland.

If it takes longer than 36 months to sell your previous main home

You may still be able to get a refund of the extra 3% SDLT if:

you purchased your new home on or after 1 January 2017

the delay was outside your control, for example because of coronavirus (COVID-19) or a public authority blocking the sale

you have now sold your old home

To claim a refund, write to HMRC and explain why the sale took longer than 36 months.

Include:

your details

details of the main buyer - if different to your own

details of the property where higher rate SDLT was paid - including the address, date of purchase and SDLT unique transaction reference number

details of the previous main residence - including the address, date of sale and SDLT unique transaction reference number

the amount of higher rate SDLT paid

the amount of tax you’re asking for a repayment of

a bank account and sort code for the person receiving the payment

Rates if you’re not a UK resident

You’ll usually pay a 2% surcharge if you’re buying a residential property in England or Northern Ireland on or after 1 April 2021.

If you have to pay the surcharge, you’ll also have to pay any other rates of SDLT that apply, for example:

if you already own a property and you’re buying an additional property

if you’re a first-time buyer

Use the SDLT calculator to work out how much tax you’ll pay.

Special rates

There are different SDLT rules and rate calculations for:

corporate bodies

people buying 6 or more residential properties in one transaction

shared ownership properties

multiple purchases or transfers between the same buyer and seller (‘linked purchases’)

purchases that mean you own more than one property

companies and trusts buying residential property

Rates for non-residential and mixed land and property

You must still send an SDLT return for most transactions under £150,000.

Non-residential property includes:

commercial property, for example shops or offices

property that isn’t suitable to be lived in

forests

agricultural land that’s part of a working farm or used for agricultural reasons

any other land or property that is not part of a dwelling’s garden or grounds

6 or more residential properties bought in a single transaction

Freehold sales and transfers

You can also use this table to work out the SDLT rate for a lease premium.

Property or lease premium or transfer value | SDLT rate

Up to £150,000 | Zero

The next £100,000 (the portion from £150,001 to £250,000) | 2%

The remaining amount (the portion above £250,000) | 5%

New leasehold sales and transfers

When you buy a new non-residential or mixed leasehold you pay SDLT on both the:

purchase price of the lease (the ‘lease premium’) using the rates above

value of the annual rent you pay (the ‘net present value’)

These are calculated separately then added together.

If you buy an existing (‘assigned’) lease, you only pay SDLT on the lease price (or ‘consideration’).

Net present value of rent | SDLT rate

£0 to £150,000 | Zero

The portion from £150,001 to £5,000,000 | 1%

The portion above £5,000,000 | 2%

How much you’ll pay

You can work out how much SDLT you’ll pay for your non-residential lease using HM Revenue and Customs’ (HMRC):

SDLT calculator

guidance on buying leasehold properties

You may pay a higher rate of SDLT for multiple purchases or transfers from the same seller.

Using previous SDLT rates

You may qualify for previous SDLT rates if you exchanged contracts before 17 March 2016 but completed on or after that date.

If you qualify for the previous rates, you can choose to pay SDLT using the current or previous rates.

Use HMRC’s SDLT calculator to work out if you qualify and how much you’ll pay using both rates.

Enter the figure for the rate you choose in your SDLT return.

Land and property transfers

The rules around SDLT depend on the specific circumstances surrounding the transfer.

HM Revenue and Customs (HMRC) has guidance on transfers:

as a result of marriage, civil partnerships or moving in together

on divorce, separation or the end of a civil partnership

of jointly owned property or land

if the larger share is given as a gift

given as a gift or left in a will

to or from a company

Shared ownership property

You may have to pay Stamp Duty Land Tax (SDLT) when you buy a property through a shared ownership scheme run by an approved public body.

This includes:

local housing authorities

housing associations

housing action trusts

the Northern Ireland Housing Executive

the Commission for the New Towns

development corporations

You can choose to either:

make a one-off payment based on the market value of the property (‘market value election’)

pay SDLT in stages

Market value election

You do not pay any more SDLT after this, even if you buy a bigger share in the property later on.

HM Revenue and Customs (HMRC) has guidance on SDLT if you do not have the right to the freehold.

Paying in stages

You may have to pay extra SDLT if the total rent over the life of the lease (known as the ‘net present value’) is more than the SDLT threshold.

SDLT if you buy more shares

If you buy any more shares in the property, you do not have to pay any more SDLT or send a return to HMRC until you own more than an 80% share.

Once your share of the property goes over 80% you must send a return and pay SDLT on:

the transaction that took you over 80%

any transactions after that

Calculating your SDLT

To work out the SDLT if you buy more shares that take you over 80%:

Multiply the two figures, for example SDLT of £700 multiplied by 0.25 = £175. This is the amount you would need to pay in SDLT for this share.

Additional tax if payments are linked

You can read more about paying SDLT when you buy more shares.

Reliefs and exemptions

You must complete an SDLT return to claim relief, even if no tax is due.

HM Revenue and Customs (HMRC) has guidance on SDLT reliefs for:

first-time buyers

multiple dwellings

building companies buying an individual’s home

employers buying an employee’s house

local authorities making compulsory purchases

property developers providing amenities to communities

companies transferring property to another company

charities

right to buy properties

registered social landlords

Crown employees

Exemptions

You do not have to pay SDLT or file a return if:

no money or other payment changes hands for a land or property transfer

property is left to you in a will

property is transferred because of divorce or dissolution of a civil partnership

you buy a freehold property for less than £40,000

you buy a new or assigned lease of 7 years or more, as long as the premium is less than £40,000 and the annual rent is less than £1,000

you use alternative property financial arrangements, for example to comply with Sharia law

Read HMRC’s guidance on transactions that do not need a return.


We are trailer manufacturing company  and our trailers were manufactured after 29th July 2013. We have an evidence of approval from IVA . Do we need permission?

You must apply to the Driver and Vehicle Standards Agency (DVSA) for permission if you supply large goods trailers for use on the road.

Supply a large goods trailer for use on the road

Overview

This is called a ‘letter of consent’ and applies to ‘final suppliers’.

You need a letter of consent if your trailer:

is for carrying goods and weighs more than 1020kg when it’s not carrying any goods or other items (known as ‘unladen weight’)

is a semi-trailer

You do not need a letter of consent if your trailer is listed in Schedule 2 of the Goods Vehicle (Plating and Testing) Regulations.

Who needs permission

You need to get permission if you’re a ‘final supplier’ of trailers. Final suppliers are:

trailer manufacturers

trailer dealers

importers of new trailers

If you’re a dealer or importer, you only have to get permission if it has not already been obtained, for example if the trailer was built abroad and the manufacturer did not apply.

When you need to get permission depends on when the trailer was put into service in the UK.

Type of trailer | When you need permission

Trailers manufactured in a single stage | From 29 October 2012

Trailers manufactured in multiple stages | From 29 October 2013

Special purpose trailers | From 29 October 2014

Special purpose trailers include some trailer caravans, boat launching trailers, gritters and towed machinery. Check if your trailer is ‘special purpose’ by calling the Driver and Vehicle Standards Agency (DVSA) helpline.

It’s an offence to supply or use these trailers without getting permission first and you could be fined.

If you’re an operator using large goods trailers on the road supplied after the dates above, you do not need to get permission - it should already have been given.

You can check this by calling the DVSA helpline.

How to apply

Apply using form TES1.

You might also need to send evidence of vehicle approval depending on when the trailer was manufactured.

| Manufacture date | Evidence of approval needed

Trailers (not including special purpose) manufactured in single and multiple stages | Up to and including 29 July 2012 | No

Trailers (not including special purpose) manufactured in a single stage | After 29 July 2012 | Yes

Trailers (not including special purpose) manufactured in multiple stages | After 29 July 2012 up to and including 29 July 2013 | Partial (at least one element of approval)

Trailers (not including special purpose) manufactured in multiple stages | After 29 July 2013 | Yes

Special Purpose trailers manufactured in a single stage | After 29 July 2012 | Yes

Special Purpose trailers manufactured in multiple stages | After 29 July 2013 | Yes

The Driver and Vehicle Standards Agency (DVSA) accepts the following evidence of vehicle approval:

a European Community Whole Vehicle Type Approval (ECWVTA) Certificate of Conformity (CoC)

a UK National Small Series Type Approval (NSSTA) CoC

a UK Individual Vehicle Approval (IVA) certificate

More details are in the guidance notes. There is an additional form if you want to apply for consent of multiple trailers.

You can also get the form and notes from the DVSA helpline:

Send the form and your supporting documents to:

Apply for a trailer identification number

You can apply for a trailer identification number (also known as a ministry number) to add to your trailer while it’s still being built.

Do this by submitting the vehicle identification number (VIN) using form TES 2.

After you apply

Once DVSA has received your application and confirmed that you meet the requirements you’ll get a ‘letter of consent to supply’.

If applicable, you’ll also get ministry plates, provided your approval documents and application give enough technical information.

If your application is rejected, DVSA will send you a letter explaining the reasons why.

You need a letter of consent if your trailer:

Overview

This is called a ‘letter of consent’ and applies to ‘final suppliers’.

is for carrying goods and weighs more than 1020kg when it’s not carrying any goods or other items (known as ‘unladen weight’)

is a semi-trailer

Who needs permission

You need to get permission if you’re a ‘final supplier’ of trailers. Final suppliers are:

trailer manufacturers

trailer dealers

importers of new trailers

When you need to get permission depends on when the trailer was put into service in the UK.

Type of trailer | When you need permission

Trailers manufactured in a single stage | From 29 October 2012

Trailers manufactured in multiple stages | From 29 October 2013

Special purpose trailers | From 29 October 2014

It’s an offence to supply or use these trailers without getting permission first and you could be fined.

You can check this by calling the DVSA helpline.

How to apply

Apply using form TES1.

You might also need to send evidence of vehicle approval depending on when the trailer was manufactured.

| Manufacture date | Evidence of approval needed

Trailers (not including special purpose) manufactured in single and multiple stages | Up to and including 29 July 2012 | No

Trailers (not including special purpose) manufactured in a single stage | After 29 July 2012 | Yes

Trailers (not including special purpose) manufactured in multiple stages | After 29 July 2013 | Yes

Special Purpose trailers manufactured in a single stage | After 29 July 2012 | Yes

Special Purpose trailers manufactured in multiple stages | After 29 July 2013 | Yes

The Driver and Vehicle Standards Agency (DVSA) accepts the following evidence of vehicle approval:

a European Community Whole Vehicle Type Approval (ECWVTA) Certificate of Conformity (CoC)

a UK National Small Series Type Approval (NSSTA) CoC

a UK Individual Vehicle Approval (IVA) certificate

More details are in the guidance notes. There is an additional form if you want to apply for consent of multiple trailers.

You can also get the form and notes from the DVSA helpline:

Send the form and your supporting documents to:

Apply for a trailer identification number

Do this by submitting the vehicle identification number (VIN) using form TES 2.

After you apply

If your application is rejected, DVSA will send you a letter explaining the reasons why.

is for carrying goods and weighs more than 1020kg when it’s not carrying any goods or other items (known as ‘unladen weight’)

Overview

This is called a ‘letter of consent’ and applies to ‘final suppliers’.

You need a letter of consent if your trailer:

is a semi-trailer

Who needs permission

You need to get permission if you’re a ‘final supplier’ of trailers. Final suppliers are:

trailer manufacturers

trailer dealers

importers of new trailers

When you need to get permission depends on when the trailer was put into service in the UK.

Type of trailer | When you need permission

Trailers manufactured in a single stage | From 29 October 2012

Trailers manufactured in multiple stages | From 29 October 2013

Special purpose trailers | From 29 October 2014

It’s an offence to supply or use these trailers without getting permission first and you could be fined.

You can check this by calling the DVSA helpline.

How to apply

Apply using form TES1.

You might also need to send evidence of vehicle approval depending on when the trailer was manufactured.

| Manufacture date | Evidence of approval needed

Trailers (not including special purpose) manufactured in single and multiple stages | Up to and including 29 July 2012 | No

Trailers (not including special purpose) manufactured in a single stage | After 29 July 2012 | Yes

Trailers (not including special purpose) manufactured in multiple stages | After 29 July 2013 | Yes

Special Purpose trailers manufactured in a single stage | After 29 July 2012 | Yes

Special Purpose trailers manufactured in multiple stages | After 29 July 2013 | Yes

The Driver and Vehicle Standards Agency (DVSA) accepts the following evidence of vehicle approval:

a European Community Whole Vehicle Type Approval (ECWVTA) Certificate of Conformity (CoC)

a UK National Small Series Type Approval (NSSTA) CoC

a UK Individual Vehicle Approval (IVA) certificate

More details are in the guidance notes. There is an additional form if you want to apply for consent of multiple trailers.

You can also get the form and notes from the DVSA helpline:

Send the form and your supporting documents to:

Apply for a trailer identification number

Do this by submitting the vehicle identification number (VIN) using form TES 2.

After you apply

If your application is rejected, DVSA will send you a letter explaining the reasons why.

is a semi-trailer

Overview

This is called a ‘letter of consent’ and applies to ‘final suppliers’.

You need a letter of consent if your trailer:

is for carrying goods and weighs more than 1020kg when it’s not carrying any goods or other items (known as ‘unladen weight’)

is a semi-trailer

Who needs permission

You need to get permission if you’re a ‘final supplier’ of trailers. Final suppliers are:

trailer manufacturers

trailer dealers

importers of new trailers

When you need to get permission depends on when the trailer was put into service in the UK.

Type of trailer | When you need permission

Trailers manufactured in a single stage | From 29 October 2012

Trailers manufactured in multiple stages | From 29 October 2013

Special purpose trailers | From 29 October 2014

It’s an offence to supply or use these trailers without getting permission first and you could be fined.

You can check this by calling the DVSA helpline.

How to apply

Apply using form TES1.

You might also need to send evidence of vehicle approval depending on when the trailer was manufactured.

| Manufacture date | Evidence of approval needed

Trailers (not including special purpose) manufactured in single and multiple stages | Up to and including 29 July 2012 | No

Trailers (not including special purpose) manufactured in a single stage | After 29 July 2012 | Yes

Trailers (not including special purpose) manufactured in multiple stages | After 29 July 2013 | Yes

Special Purpose trailers manufactured in a single stage | After 29 July 2012 | Yes

Special Purpose trailers manufactured in multiple stages | After 29 July 2013 | Yes

The Driver and Vehicle Standards Agency (DVSA) accepts the following evidence of vehicle approval:

a European Community Whole Vehicle Type Approval (ECWVTA) Certificate of Conformity (CoC)

a UK National Small Series Type Approval (NSSTA) CoC

a UK Individual Vehicle Approval (IVA) certificate

More details are in the guidance notes. There is an additional form if you want to apply for consent of multiple trailers.

You can also get the form and notes from the DVSA helpline:

Send the form and your supporting documents to:

Apply for a trailer identification number

Do this by submitting the vehicle identification number (VIN) using form TES 2.

After you apply

If your application is rejected, DVSA will send you a letter explaining the reasons why.

You need to get permission if you’re a ‘final supplier’ of trailers. Final suppliers are:

Overview

This is called a ‘letter of consent’ and applies to ‘final suppliers’.

You need a letter of consent if your trailer:

is for carrying goods and weighs more than 1020kg when it’s not carrying any goods or other items (known as ‘unladen weight’)

is a semi-trailer

Who needs permission

trailer manufacturers

trailer dealers

importers of new trailers

When you need to get permission depends on when the trailer was put into service in the UK.

Type of trailer | When you need permission

Trailers manufactured in a single stage | From 29 October 2012

Trailers manufactured in multiple stages | From 29 October 2013

Special purpose trailers | From 29 October 2014

It’s an offence to supply or use these trailers without getting permission first and you could be fined.

You can check this by calling the DVSA helpline.

How to apply

Apply using form TES1.

You might also need to send evidence of vehicle approval depending on when the trailer was manufactured.

| Manufacture date | Evidence of approval needed

Trailers (not including special purpose) manufactured in single and multiple stages | Up to and including 29 July 2012 | No

Trailers (not including special purpose) manufactured in a single stage | After 29 July 2012 | Yes

Trailers (not including special purpose) manufactured in multiple stages | After 29 July 2013 | Yes

Special Purpose trailers manufactured in a single stage | After 29 July 2012 | Yes

Special Purpose trailers manufactured in multiple stages | After 29 July 2013 | Yes

The Driver and Vehicle Standards Agency (DVSA) accepts the following evidence of vehicle approval:

a European Community Whole Vehicle Type Approval (ECWVTA) Certificate of Conformity (CoC)

a UK National Small Series Type Approval (NSSTA) CoC

a UK Individual Vehicle Approval (IVA) certificate

More details are in the guidance notes. There is an additional form if you want to apply for consent of multiple trailers.

You can also get the form and notes from the DVSA helpline:

Send the form and your supporting documents to:

Apply for a trailer identification number

Do this by submitting the vehicle identification number (VIN) using form TES 2.

After you apply

If your application is rejected, DVSA will send you a letter explaining the reasons why.

trailer manufacturers

Overview

This is called a ‘letter of consent’ and applies to ‘final suppliers’.

You need a letter of consent if your trailer:

is for carrying goods and weighs more than 1020kg when it’s not carrying any goods or other items (known as ‘unladen weight’)

is a semi-trailer

Who needs permission

You need to get permission if you’re a ‘final supplier’ of trailers. Final suppliers are:

trailer manufacturers

trailer dealers

importers of new trailers

When you need to get permission depends on when the trailer was put into service in the UK.

Type of trailer | When you need permission

Trailers manufactured in a single stage | From 29 October 2012

Trailers manufactured in multiple stages | From 29 October 2013

Special purpose trailers | From 29 October 2014

It’s an offence to supply or use these trailers without getting permission first and you could be fined.

You can check this by calling the DVSA helpline.

How to apply

Apply using form TES1.

You might also need to send evidence of vehicle approval depending on when the trailer was manufactured.

| Manufacture date | Evidence of approval needed

Trailers (not including special purpose) manufactured in single and multiple stages | Up to and including 29 July 2012 | No

Trailers (not including special purpose) manufactured in a single stage | After 29 July 2012 | Yes

Trailers (not including special purpose) manufactured in multiple stages | After 29 July 2013 | Yes

Special Purpose trailers manufactured in a single stage | After 29 July 2012 | Yes

Special Purpose trailers manufactured in multiple stages | After 29 July 2013 | Yes

The Driver and Vehicle Standards Agency (DVSA) accepts the following evidence of vehicle approval:

a European Community Whole Vehicle Type Approval (ECWVTA) Certificate of Conformity (CoC)

a UK National Small Series Type Approval (NSSTA) CoC

a UK Individual Vehicle Approval (IVA) certificate

More details are in the guidance notes. There is an additional form if you want to apply for consent of multiple trailers.

You can also get the form and notes from the DVSA helpline:

Send the form and your supporting documents to:

Apply for a trailer identification number

Do this by submitting the vehicle identification number (VIN) using form TES 2.

After you apply

If your application is rejected, DVSA will send you a letter explaining the reasons why.

It’s an offence to supply or use these trailers without getting permission first and you could be fined.

Overview

This is called a ‘letter of consent’ and applies to ‘final suppliers’.

You need a letter of consent if your trailer:

is for carrying goods and weighs more than 1020kg when it’s not carrying any goods or other items (known as ‘unladen weight’)

is a semi-trailer

Who needs permission

You need to get permission if you’re a ‘final supplier’ of trailers. Final suppliers are:

trailer manufacturers

trailer dealers

importers of new trailers

When you need to get permission depends on when the trailer was put into service in the UK.

Type of trailer | When you need permission

Trailers manufactured in a single stage | From 29 October 2012

Trailers manufactured in multiple stages | From 29 October 2013

Special purpose trailers | From 29 October 2014

You can check this by calling the DVSA helpline.

How to apply

Apply using form TES1.

You might also need to send evidence of vehicle approval depending on when the trailer was manufactured.

| Manufacture date | Evidence of approval needed

Trailers (not including special purpose) manufactured in single and multiple stages | Up to and including 29 July 2012 | No

Trailers (not including special purpose) manufactured in a single stage | After 29 July 2012 | Yes

Trailers (not including special purpose) manufactured in multiple stages | After 29 July 2013 | Yes

Special Purpose trailers manufactured in a single stage | After 29 July 2012 | Yes

Special Purpose trailers manufactured in multiple stages | After 29 July 2013 | Yes

The Driver and Vehicle Standards Agency (DVSA) accepts the following evidence of vehicle approval:

a European Community Whole Vehicle Type Approval (ECWVTA) Certificate of Conformity (CoC)

a UK National Small Series Type Approval (NSSTA) CoC

a UK Individual Vehicle Approval (IVA) certificate

More details are in the guidance notes. There is an additional form if you want to apply for consent of multiple trailers.

You can also get the form and notes from the DVSA helpline:

Send the form and your supporting documents to:

Apply for a trailer identification number

Do this by submitting the vehicle identification number (VIN) using form TES 2.

After you apply

If your application is rejected, DVSA will send you a letter explaining the reasons why.


I want to keep my pay and tax records safe.  My accountant has filed my returns for the year  2020 -2021. How long should i keep the records?

How long you should keep your records depends on whether you send your tax return before or after the deadline.

Keeping your pay and tax records

Overview

You need to keep records if you have to send HM Revenue and Customs (HMRC) a Self Assessment tax return.

You’ll need your records to fill in your tax return correctly. If HMRC checks your tax return, they may ask for the documents.

You must also keep records for business income and outgoings if you’re self-employed.

How to keep your records

There are no rules on how you must keep records. You can keep them on paper, digitally or as part of a software program (like book-keeping software).

HMRC can charge you a penalty if your records are not accurate, complete and readable.

Lost or destroyed records

Try to get copies of as much as you can, for example ask banks for copies of statements, suppliers for duplicate invoice etc.

You can use ‘provisional’ or ‘estimated’ figures if you cannot recreate all your records. You must use the ‘Any other information’ box on the tax return to say that this is what you’re doing.

‘Provisional’ means you’ll be able to get paperwork to confirm your figures later. ‘Estimated’ means you will not be able to confirm the figures.

You may have to pay interest and penalties if your figures turn out to be wrong and you have not paid enough tax.

How long to keep your records

You must keep records about your business income and costs for longer if you’re self-employed.

HM Revenue and Customs (HMRC) may check your records to make sure you’re paying the right amount of tax.

Tax returns sent on or before the deadline

You should keep your records for at least 22 months after the end of the tax year the tax return is for.

Tax returns sent after the deadline

You should keep your records for at least 15 months after you sent the tax return.

Employees and limited company directors

Income from employment

You should keep documents about your pay and tax, including:

your P45 - if you leave your job, this shows your pay and tax to the date you left

your P60 - if you’re in a job on 5 April, this shows your pay and tax for the tax year

form P11D - this shows your expenses and benefits, like a company car or health insurance

certificates for any Taxed Award Schemes

information about any redundancy or termination payment

Contact your employer if you do not have your P60, P45 or form P11D.

You should also keep details of any other income or benefits from your job, including:

any tips received (unless your employer pays them through the ‘tronc’ system, which means they will have deducted tax already)

benefits you get in connection with your job from someone other than your employer, like meal vouchers

any lump sum payments not included on your P60 or P45, like incentive payments or ‘golden hellos’ (payments you get to encourage you to take a new job)

Expense records

If you’ve had to pay for things like tools, travel or specialist clothing for work, you may be able to claim for these to reduce the tax you’ll have to pay. You need to keep a record of these so you can include them in your tax return.

Benefits records

You should keep any documents relating to:

social security benefits

Statutory Sick Pay

Statutory Maternity, Paternity or Adoption Pay

Jobseeker’s Allowance

Income from employee share schemes or share-related benefits

You should keep:

copies of share option certificates and exercise notices

letters about any changes to your options

information about what you paid for your shares and the relevant dates

details of any benefits you’ve received as an employee shareholder

Savings, investments and pensions

You should keep all:

bank or building society statements and passbooks

statements of interest and income from your savings and investments

tax deduction certificates from your bank

dividend vouchers you get from UK companies

unit trust tax vouchers

documents that show the profits you’ve made from life insurance policies (called ‘chargeable event certificates’)

details of income you get from a trust

details of any out-of-the ordinary income you’ve received, like an inheritance

Pension information

You should keep:

form P160 (Part 1A) which you got when your pension started

form P60 which your pension provider sends you every year

any other details of a pension (including State Pension) and the tax deducted from it

Rental income

You should keep details of:

the dates when you let out your property

all rent you get

any income from services you give to tenants (for example if you charge for maintenance or repairs)

rent books, receipts, invoices and bank statements

allowable expenses you pay to run your property (for example services you pay for such as cleaning or gardening)

There are rules about what you can and cannot claim as expenses on your tax return.

Capital gains or losses

You may have to pay Capital Gains Tax if you sell (or ‘dispose of’) certain assets that have gone up in value since you got them.

You must make sure you keep the correct records.

Overseas income

You should keep:

evidence of income you’ve earned from overseas, like payslips, bank statements or payment confirmations

receipts for any overseas expenses you want to claim to reduce your tax bill

dividend certificates from overseas companies

certificates or other proof of the tax you’ve already paid - either in the UK or overseas

Keeping your pay and tax records

Overview

How to keep your records

Lost or destroyed records

How long to keep your records

Tax returns sent on or before the deadline

Tax returns sent after the deadline

Employees and limited company directors

Income from employment

You should keep documents about your pay and tax, including:

certificates for any Taxed Award Schemes

information about any redundancy or termination payment

Contact your employer if you do not have your P60, P45 or form P11D.

Expense records

Benefits records

You should keep any documents relating to:

social security benefits

Statutory Sick Pay

Statutory Maternity, Paternity or Adoption Pay

Jobseeker’s Allowance

Income from employee share schemes or share-related benefits

You should keep:

copies of share option certificates and exercise notices

letters about any changes to your options

information about what you paid for your shares and the relevant dates

details of any benefits you’ve received as an employee shareholder

Savings, investments and pensions

You should keep all:

bank or building society statements and passbooks

statements of interest and income from your savings and investments

tax deduction certificates from your bank

dividend vouchers you get from UK companies

unit trust tax vouchers

details of income you get from a trust

Pension information

You should keep:

form P160 (Part 1A) which you got when your pension started

form P60 which your pension provider sends you every year

Rental income

You should keep details of:

the dates when you let out your property

all rent you get

rent books, receipts, invoices and bank statements

Capital gains or losses

You must make sure you keep the correct records.

Overseas income

You should keep:

dividend certificates from overseas companies