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Advanced Taxation (UK) · Tax administration and the UK tax system

Stamp Taxes: SDLT on Non-Residential Property and Stamp Duty

Updated 11 October 2026 · Fact-checked

SDLT is paid by the buyer of non-residential land. It is charged in slices: 0% to £150,000, 2% from £150,001 to £250,000 and 5% above £250,000. Stamp duty is paid by the buyer of shares at 0.5% of the price. Apply the rate to the right amount, then state who pays.

Understand Stamp Taxes: SDLT on Non-Residential Property and Stamp Duty

Stamp taxes are taxes on transactions. The buyer normally pays them, and you only pay when you acquire something. A seller does not pay stamp duty land tax or stamp duty on the sale.

Stamp duty land tax (SDLT) applies to purchases of land and buildings in England and Northern Ireland. For ATX-UK you need the rates for non-residential property, such as shops, offices and factories. The tax tables give the bands.

The rates work like income tax bands. Each slice of the price is taxed at its own rate. This is the answer to the common question of slab or slice: for non-residential property the tax is charged by slice, not on the whole price at one rate. A higher price never makes the tax on the lower slices bigger.

Stamp duty applies to a transfer of shares made by a stock transfer form. The rate in the tax tables is a flat 0.5%. It is charged on the price paid, the consideration. Your exam notes also include the electronic route, stamp duty reserve tax (SDRT), which is a separate tax. It is covered in its own topic, so here you should focus on the 0.5% rate and the principle of who pays.

In the exam these taxes rarely stand alone. They appear in a larger scenario, such as a company buying premises or an individual buying shares. You must work out the cost of each choice, so SDLT or stamp duty is an extra cost of buying. Include it in your cash flow and advice.

Key rules to remember

SDLT on non-residential property, slice rates
Up to £150,000: 0% | £150,001 to £250,000: 2% | £250,001 and above: 5%
Each band applies only to the part of the price in that band. These rates are in the tax tables ACCA gives you.
SDLT when price is above £250,000
(£250,000 − £150,000) × 2% + (Price − £250,000) × 5% = £2,000 + (Price − £250,000) × 5%
The £100,000 slice gives £2,000. Use this as a check.
SDLT when price is between £150,000 and £250,000
(Price − £150,000) × 2%
No tax arises on the first £150,000.
Stamp duty on shares
Price paid × 0.5%
Paid by the buyer. The rate is flat, with no bands.

How to solve Stamp Taxes: SDLT on Non-Residential Property and Stamp Duty questions

Use this method for any question on stamp taxes. Show each step so you can pick up method marks even if one number is wrong.

  1. 1Identify the asset: non-residential land and buildings (SDLT) or shares (stamp duty).
  2. 2Identify who pays. It is the buyer, so tie the cost to the person acquiring the asset.
  3. 3Find the price paid, or the consideration. Use this figure as the base for the tax.
  4. 4For SDLT, split the price into the three bands and tax each slice at its own rate.
  5. 5For shares, multiply the price by 0.5%.
  6. 6Add the amounts and state the total in £, to the nearest £ as the supplementary instructions say.
  7. 7Say what it means for the scenario, for example the extra cash cost and the effect on the comparison you are asked to make.

Quickest way: Fast slice method for SDLT

When to use it: Use this when the question asks for SDLT on a single non-residential purchase and you are short of time.

  1. If the price is £150,000 or less, SDLT is nil.
  2. If the price is up to £250,000, SDLT = (price − £150,000) × 2%.
  3. If the price is above £250,000, SDLT = £2,000 + (price − £250,000) × 5%.
  4. For shares, just take 0.5% of the price.
  5. Do a quick sense check: the tax should be well below 5% of the full price.

Common mistakes in Stamp Taxes: SDLT on Non-Residential Property and Stamp Duty

  • Applying one rate to the whole price, for example 5% on the entire £400,000

    Students mix up slab and slice, or recall residential rules from other contexts.

    Fix: Always split the price into bands. For non-residential property the answer is a slice calculation.

  • Charging the seller

    Students think of CGT and income tax, where the seller is taxed.

    Fix: Write down the buyer as the taxpayer before you calculate.

  • Using the wrong band limits, such as taxing from £150,000 at 2% on the whole of the amount above that

    The upper band start is easy to forget under time pressure.

    Fix: Remember the bands: 0% to £150,000, 2% to £250,000, 5% beyond. Look them up in the tax tables.

  • Using the share value instead of the price paid for stamp duty

    Students link the tax to the market value of the shares.

    Fix: Use the consideration paid, as the base is the amount the buyer pays.

  • Forgetting to include the tax as part of the buyer's cost

    Students compute the tax but do not link it to the decision.

    Fix: Add SDLT or stamp duty to the total cost and mention it in your conclusion.

Worked examples

Example 1

A company buys a warehouse for £420,000. The warehouse is non-residential property. Calculate the SDLT payable.

Show the solution
  1. The buyer pays the SDLT, so the company is liable.
  2. First £150,000 at 0% = £0.
  3. Next £100,000 (£150,001 to £250,000) at 2% = £2,000.
  4. Remaining £170,000 (£420,000 − £250,000) at 5% = £8,500.
  5. Total = £0 + £2,000 + £8,500 = £10,500.

Answer: SDLT payable by the company is £10,500.

Example 2

Ravi buys 20,000 shares at £6.50 each through a stock transfer form. Calculate the stamp duty. Then state who pays.

Show the solution
  1. Price paid = 20,000 × £6.50 = £1,30,000.
  2. Stamp duty rate on shares is 0.5%.
  3. Stamp duty = £1,30,000 × 0.5% = £650.
  4. The buyer pays stamp duty, so Ravi pays it.

Answer: Stamp duty is £650, payable by Ravi as the buyer.

Exam tips

  • Copy the band limits from the tax tables on the exam screen. Do not rely on memory.
  • Show each slice on its own line, with the rate and the amount. This gains method marks.
  • Name the payer and the tax in your answer, and use it in the final advice.
  • Link stamp taxes to the wider question, such as the total cost of buying premises or shares, and comment on cash flow.
  • Keep workings to the nearest £ as the supplementary instructions require.

Practice questions from Tax administration and the UK tax system

Stamp Taxes: SDLT on Non-Residential Property and Stamp Duty 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: SDLT on Non-Residential Property and Stamp Duty: frequently asked questions

Is SDLT on non-residential property charged as a slab or a slice?

It is charged in slices. Each part of the price is taxed at the rate for its band: 0%, 2% or 5%. You add the slices to get the total.

What is the rate of stamp duty on shares in ATX-UK?

The tax tables show a flat 0.5%. You apply it to the price paid for the shares. The buyer pays.

What is the difference between stamp duty and stamp duty reserve tax?

Both apply to share purchases. Stamp duty applies to transfers made by a stock transfer form, while SDRT is a separate tax on agreements to transfer shares, often for electronic trades. The rate in your tables for stamp duty is 0.5%.

Do I get the SDLT bands in the exam?

Yes. The tax rates and allowances in the exam show the non-residential SDLT bands and the stamp duty rate on shares. You still need to apply them correctly.