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ACCA Strategic Professional · Advanced Taxation (UK)

Stamp Taxes: Stamp Duty, SDRT and SDLT for ACCA ATX-UK

Stamp taxes are transaction taxes paid by the buyer or lessee. Stamp duty and SDRT charge 0.5% on share purchases. SDLT charges non-residential property in slices: 0% to £150,000, 2% to £250,000, then 5%. To solve a question, identify the asset, the tax that applies, the consideration and who pays.

What this chapter covers

This chapter covers the taxes that arise when you buy shares or property in the UK. Stamp duty applies to written transfers of shares. Stamp duty reserve tax (SDRT) applies to agreements to transfer shares, including paperless deals. Stamp duty land tax (SDLT) applies to land and buildings. You only need non-residential property for ATX-UK.

The maths is light. The tax tables give the rates: stamp duty on shares at 0.5%, and SDLT on non-residential property at 0% up to £150,000, 2% from £150,001 to £250,000 and 5% above £250,000. The marks come from knowing which tax applies, who pays, the rounding rules and any exemptions.

The chapter links to many other parts of the paper. Share purchases appear in company reorganisations, share buy-backs and business sales. Property purchases and leases appear in business expansion, relocation and group restructuring. Stamp taxes are usually a short part of a wider Section A or Section B scenario. They rarely stand alone, so you must spot them in a long question.

Stamp taxes are a compact chapter with predictable rules, so they are an efficient source of marks. They often appear as a small requirement inside a larger transaction question, such as advising on the cost of buying a company or premises. Many students skip them because the rates look easy, then lose marks on who pays, on rounding, or on forgetting the tax altogether. A candidate who mentions the right tax with a short, correct calculation gains technical marks. A sensible comment on the cost to the client adds professional skills marks.

Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax): topics in the order to study them

  1. 1Stamp Duty on Shares and Marketable SecuritiesStart here because it is the simplest tax: one rate, a written transfer, and a clear payer. It gives you the base for SDRT.
  2. 2Stamp Duty Reserve Tax (SDRT)Learn it second so you can compare it with stamp duty. You must know when each applies and how SDRT is reduced when stamp duty is paid.
  3. 3Stamp Duty Land Tax on Non-Residential PropertyThis moves from shares to land. Learn the slice method for purchases with the tax table before turning to leases.
  4. 4SDLT on Leases and AdministrationLeases build on the purchase rules and add rent calculations, so study them last. Administration comes at the end because it ties the whole chapter together.

How to prepare Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax)

Treat this as a short, rule-based chapter. Aim for fast recall and accurate calculations, then practise spotting it inside longer questions.

  1. Memorise the three taxes in one line each: stamp duty on written share transfers, SDRT on agreements to transfer shares, SDLT on land transactions.
  2. Learn the rates from the tax tables and practise finding them quickly: 0.5% on shares, and the 0%, 2% and 5% SDLT slices for non-residential property.
  3. Practise share calculations. Apply 0.5% to the consideration. For stamp duty, round up to the nearest £5. For example, £12,345 × 0.5% = £61.725, so the duty is £65. SDRT is not rounded in this way.
  4. Practise SDLT slice calculations. For a £400,000 purchase: nil on the first £150,000, 2% × £100,000 = £2,000, and 5% × £150,000 = £7,500. The total is £9,500.
  5. Learn who pays and when: the buyer or lessee pays. Revise the main exemptions and the filing and payment deadlines.
  6. For leases, read the question carefully. Use the rent and premium rules and any rates the exam provides, and do not rely on memory if the question gives different figures.
  7. Do past-style scenarios. Write one clear line on which tax applies, show the working, and state who pays. Then comment on the cost to the client.

Common mistakes in Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax)

  • Charging SDLT on the whole price at the top rate

    Fix: Split the price into the bands in the table. Work out tax on each slice and add them up. Check the total against your estimate.

  • Forgetting to round stamp duty up to the nearest £5

    Fix: Calculate 0.5% of the consideration, then round up to the next £5. Do not apply this rounding to SDRT.

  • Mixing up stamp duty and SDRT

    Fix: Ask whether there is a written transfer (stamp duty) or just an agreement or paperless deal (SDRT). Name the tax correctly in your answer.

  • Omitting stamp taxes from a transaction question

    Fix: When a scenario involves buying shares, a company or premises, add a stamp taxes check to your planning list.

  • Naming the wrong person as payer

    Fix: State clearly that the buyer or lessee pays these taxes. Then show the effect on the buyer's total cost.

  • Using residential rules or rates for commercial property

    Fix: Use only the non-residential table in the exam. Check that the property in the question is non-residential.

Last-day revision: Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax)

  • Stamp duty applies to written transfers of shares; SDRT applies to agreements to transfer shares.
  • The share rate in the tax tables is 0.5% for stamp duty.
  • Stamp duty is rounded up to the nearest £5; SDRT is not rounded to £5.
  • The buyer normally pays stamp duty and SDRT on shares.
  • SDLT non-residential rates: 0% to £150,000, 2% from £150,001 to £250,000, 5% above £250,000.
  • SDLT is charged in slices, not on the whole price at one rate.
  • The purchaser or lessee pays SDLT.
  • Example: £400,000 non-residential purchase gives SDLT of £9,500.
  • If both stamp duty and SDRT would arise on the same deal, the charge is not paid twice.
  • Check the question for exemptions before calculating any tax.
  • Lease questions: use the rent and premium details and any rates given in the exam.
  • Always state the tax, the working, who pays and the cost to the client.

Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax) practice questions

Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax): frequently asked questions

What rates do I need to know for stamp taxes in ATX-UK?

The tax tables give stamp duty on shares at 0.5% and the SDLT bands for non-residential property: 0% to £150,000, 2% from £150,001 to £250,000 and 5% above £250,000. You should be able to find these quickly and apply them. Practise reading the table before the exam.

Who pays stamp duty, SDRT and SDLT?

The buyer pays stamp duty and SDRT on shares. The purchaser or lessee pays SDLT on land. State this clearly in your answer, as it affects who bears the cost of a deal.

How is SDLT calculated on non-residential property?

You apply each rate only to the part of the price that falls in that band. For a £400,000 purchase the tax is nil on the first £150,000, £2,000 on the next £100,000 and £7,500 on the last £150,000. The total is £9,500.

Is the Strategic Professional ATX-UK exam still the same for the next sittings?

The ATX-UK syllabus for June 2026 to June 2027 is based on Finance Act 2025. ACCA has stated that June 2027 is the final sitting of the current Strategic Professional exams, and the redesigned exams start in September 2027. Use the tax tables supplied for your sitting.