Finance Act 2003, section 55

Amount of tax chargeable: general

Part 4 Stamp duty land tax

(1)The amount of tax chargeable in respect of a chargeable transaction [F83to which this section appliesF83] is [F84determined in accordance with subsections (1B) [F85 and (1C)F85,F84]] .

[F86 (1A)This section applies to any chargeable transaction other than a transaction to which paragraph 3 of Schedule 4A or step 4 of section 74(1A) (higher rate for certain transactions) applies.F86]

[F87 (1B)If F88... the transaction is not one of a number of linked transactions, the amount of tax chargeable is determined as follows—

  • Step 1 Apply the rates specified in the second column of [F89 the appropriate tableF89] below to the parts of the relevant consideration specified in the first column of [F90 the appropriate tableF90] .

    [F91 “The “appropriate table” is—

    (a) Table A, if the relevant land consists entirely of residential property, and

    (b) Table B, if the relevant land consists of or includes land that is not residential property.F91]

  • Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts).

    TABLE A: RESIDENTIAL
    Part of relevant consideration Rate
    So much as does not exceed £125,000 0%
    So much as exceeds £125,000 but does not exceed £250,000 2%
    So much as exceeds £250,000 but does not exceed £925,000 5%
    So much as exceeds £925,000 but does not exceed £1,500,000 10%
    The remainder (if any) 12%
    [F92Table B: Non-residential or mixed
    Relevant consideration Percentage
    So much as does not exceed £150,000 0%
    So much as exceeds £150,000 but does not exceed £250,000 2%
    The remainder (if any) 5%F92]

(1C)If F93... the transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the particular transaction under consideration is determined as follows—

F97 (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)For the purposes of [F98subsection (1B)F98] —

(a)the relevant land is the land an interest in which is the main subject-matter of the transaction, and

(b)the relevant consideration is the chargeable consideration for the transaction

F99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)[F100 For the purposes ofF100][F101 subsection (1C)F101] —

(a)the relevant land is any land an interest in which is the main subject-matter of any of [F102the linkedF102] transactions, and

(b)the relevant consideration is the total of the chargeable consideration for all those transactions.

[F103 (4A)Schedule 4ZA (higher rates for additional dwellings and dwellings purchased by companies) modifies this section as it applies for the purpose of determining the amount of tax chargeable in respect of certain transactions involving major interests in dwellings.F103]

(5)This section has effect subject to—

  • F106 section [F10474(1B)F104] ( [F105exercise of collective rights by tenants of flatsF105] ), ...

  • F106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(which [F107providesF107] for the [F108amountF108] of tax to be determined by reference to a fraction of the relevant consideration).

(6)In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to section 56 and Schedule 5 (amount of tax chargeable: rent).

F109 (7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 55 11

tax

“tax”, unless the context otherwise requires, means tax under this Part.

Defined in s.121 · see it in the full Act
linked transactions

(2)Where there are two or more linked transactions with the same effective date, the purchaser, or all of the purchasers if there is more than one, may make a single land transaction return as if all of those transactions that are notifiable were a single notifiable transaction.

Defined in s.108(2) · see it in the full Act
the relevant consideration

(2) Sub-paragraphs (3) and (4) apply if less than 100% of the chargeable consideration attributable to transaction land situated in a special tax site (“the relevant consideration”) is attributable to land that satisfies the condition in paragraph 2(b) .

Defined in Sch.6C para.7(2) · see it in the full Act
land

“land” includes—

(a)

buildings and structures, and

(b)

land covered by water;

Defined in s.121 · see it in the full Act
residential property

(1) In this Part “residential property” means—

(a)a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use, and

(b)land that is or forms part of the garden or grounds of a building within paragraph (a) (including any building or structure on such land), or

(c)an interest in or right over land that subsists for the benefit of a building within paragraph (a) or of land within paragraph (b);

and “non-residential property” means any property that is not residential property.

This is subject to the rule in subsection (7) in the case of a transaction involving six or more dwellings.

Defined in s.116(1) · see it in the full Act
main subject-matter

(6) References in this Part to the subject-matter of a land transaction are to the chargeable interest acquired (the “main subject-matter”), together with any interest or right appurtenant or pertaining to it that is acquired with it.

Defined in s.43(6) · see it in the full Act
linked

(1) Transactions are “linked” for the purposes of this Part if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them.

Defined in s.108(1) · see it in the full Act
major interest

(1) References in this Part to a “major interest” in land shall be construed as follows.

Defined in s.117(1) · see it in the full Act
dwelling

17 (1) In the provisions of this Schedule specified in sub-paragraph (3), references to a “dwelling” include references to a dwelling situated in a country or territory outside England ... and Northern Ireland.

Defined in Sch.4ZA para.17(1) · see it in the full Act
the tenants

(a) a qualifying body grants an assured shorthold tenancy assured tenancy of a dwelling to a person (“the tenant”) or persons (“the tenants”), and

Defined in Sch.9 para.14(2) · see it in the full Act
the tenant

(a) a qualifying body grants an assured shorthold tenancy assured tenancy of a dwelling to a person (“the tenant”) or persons (“the tenants”), and

Defined in Sch.9 para.14(2) · see it in the full Act

Cases considering section 55 10

BTR Core Fund JPUT v The Commissioners for HMRC

[2026] UKUT 27 (TCC) · 21 January 2026

Sets out the general rule for calculating the amount of SDLT chargeable. The provision forms part of the calculation framework applied to the mistaken rate calculation (see paras [15], [58](6), [62]). Provides for Schedule 4ZA to modify section 55 when determining SDLT for specified dwelling transactions. It formed part of the rate calculation in which BTR used the wrong rate (see paras [16], [58](7)).

The Commissioners for HMRC v Taher Suterwalla & Anor

[2024] UKUT 188 (TCC) · 1 July 2024Interprets

Interprets the distinction between the residential and non-residential SDLT tables by reference to whether the relevant land consists entirely of residential property or includes land that is not residential. (see paras [9], [27], [48]-[50]) Defines the relevant land as the land in which the interest acquired is the main subject matter of the transaction. The definition directs the classification inquiry to the land acquired in the chargeable transaction. (see para [9])

The How Development 1 Ltd v The Commissioners for HMRC

[2023] UKUT 84 (TCC) · 30 March 2023

Provides the statutory rate framework under which Table A applies to entirely residential property and Table B applies where the relevant land includes non-residential property. The classification of the woodland therefore determined the applicable SDLT rate. (see paras [9], [116], [126])

What each judgment says about section 55 is in the case-law panel in the full Act.

Amendments and notes

31 notes from legislation.gov.uk

Amendments

  1. F83Words in s. 55(1) inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 2(2)
  2. F84Words in s. 55(1) substituted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), s. 1(2) (with s. 2(3)-(6))
  3. F85Words in s. 55(1) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(2)
  4. F86S. 55(1A) inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 2(3)
  5. F87S. 55(1B)(1C) inserted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), s. 1(3) (with s. 2(3)-(6))
  6. F88Words in s. 55(1B) omitted (with effect in accordance with s. 127(12)(13) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 127(3)(a)
  7. F89Words in s. 55(1B) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(3)(b)(i)
  8. F90Words in s. 55(1B) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(3)(b)(ii)
  9. F91Words in s. 55(1B) inserted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(3)(b)(iii)
  10. F92S. 55(1B) Table B inserted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(3)(c)
  11. F93Words in s. 55(1C) omitted (with effect in accordance with s. 127(12)(13) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 127(4)(a)
  12. F94Words in s. 55(1C) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(4)(b)(i)
  13. F95Words in s. 55(1C) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(4)(b)(ii)
  14. F96Words in s. 55(1C) inserted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(4)(b)(iii)
  15. F97S. 55(2) omitted (with effect in accordance with s. 127(12)(13) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 127(5)
  16. F98Words in s. 55(3) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(6)(a)
  17. F99Words in s. 55(3)(b) omitted (with effect in accordance with s. 127(12)(13) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 127(6)(b)
  18. F100Words in s. 55(4) inserted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), s. 1(6) (with s. 2(3)-(6))
  19. F101Words in s. 55(4) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(7)(a)
  20. F102Words in s. 55(4)(a) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(7)(b)
  21. F103S. 55(4A) inserted (with effect in accordance with s. 128(5)(6) of the amending Act) by Finance Act 2016 (c. 24), s. 128(2)
  22. F106Words in s. 55(5) omitted (with effect in accordance with s. 29(4) of the amending Act) by virtue of Scotland Act 2012 (c. 11), s. 44(2)(b)(3)(b), Sch. 3 para. 5(a) (with s. 29(5)(6)); S.I. 2015/637, art. 2
  23. F104Word in s. 55(5) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 132(a)
  24. F105Words in s. 55(5) substituted (with effect in accordance with s. 80(7) of the amending Act) by Finance Act 2009 (c. 10), s. 80(6)
  25. F107Word in s. 55(5) substituted (with effect in accordance with s. 29(4) of the amending Act) by Scotland Act 2012 (c. 11), s. 44(2)(b)(3)(b), Sch. 3 para. 5(b) (with s. 29(5)(6)); S.I. 2015/637, art. 2
  26. F108Word in s. 55(5) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 132(b)
  27. F109S. 55(7) omitted (with effect in accordance with s. 2(2) of the amending Act) by virtue of Stamp Duty Land Tax Act 2015 (c. 1), s. 1(7) (with s. 2(3)-(6))

Modifications

  1. C26S. 55(1B) modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended 10.6.2021) by 2021 c. 26, s. 87(2))
  2. C27S. 55(1B) modified (temp.) (8.2.2023) by Stamp Duty Land Tax (Temporary Relief) Act 2023 (c. 2), s. 1
  3. C28S. 55(4) excluded (with effect in accordance with reg. 1(2) of the amending S.I.) by The Stamp Duty Land Tax (Zero-Carbon Homes Relief) Regulations 2007 (S.I. 2007/3437), regs. 1(1), 9 (with reg. 3)

Commencement

  1. I29Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)