Solicitors Qualifying Examination (SQE) Practice Exa\

What is SDLT payable on?

1. Only the purchase price of the property

2. The total purchase price plus VAT

3. Only the VAT associated with the sale

4. The transaction costs alone

The correct answer is: The total purchase price plus VAT

SDLT, or Stamp Duty Land Tax, is a tax that is calculated based on the purchase price of the property being acquired. Specifically, SDLT is payable on the total consideration for the property, which includes not only the purchase price but also any additional costs that may be included in the transaction. When the property price includes VAT, that VAT amount is also part of the total consideration for SDLT calculations. Therefore, for a residential property purchase that includes VAT, the SDLT liability will be based on the entire amount paid, which is the purchase price plus any applicable VAT. This understanding underscores the importance of considering all components of a property transaction to accurately assess SDLT obligations, making the answer related to the total purchase price plus VAT the most accurate representation of how SDLT is assessed.