SQE1 SDLT: what you must know and how it is tested

SQE1 SDLT questions test who pays Stamp Duty Land Tax, when the return is due, and how to calculate it from rates the question gives you. From September 2026 the exam provides rates and thresholds, so the skill is the method. Read it with the wider Property Practice guide.

SubjectProperty Practice (FLK2)

Key lawFinance Act 2003, Part 4

Question typeSingle best answer, five options

The rules to apply

SDLT is charged on land transactions in England and Northern Ireland (Wales and Scotland have their own taxes). The buyer pays. It is charged on the chargeable consideration, which includes money, the value of goods or services given, debts taken over and any VAT payable on the price. Residential rates and non residential rates are different. Mixed use property is charged at non residential rates.

SDLT is a slice tax: each portion of the price is taxed at the rate for its band. Do not apply one rate to the whole price. A higher rates surcharge applies to additional dwellings and a surcharge to non UK resident buyers, and each is added to the rate in every band. First time buyer relief, where available, applies a different set of bands. The question will give the rates and the conditions, so apply them as written.

On leases, SDLT is charged on any premium and also on the net present value of the rent over the term, using the rates for rent. Check which part the question asks about.

Timing. The effective date is normally completion. It is earlier if the buyer takes possession or pays substantially all of the price before completion (substantial performance). A return (SDLT1) must be filed and tax paid within 14 days of the effective date. The Land Registry will not register the buyer's title without evidence that the SDLT return has been filed. The solicitor acting for the buyer usually files the return and pays from funds supplied by the client.

Traps examiners use

Applying one rate to the whole price instead of each slice.
Leaving out VAT from the chargeable consideration.
Missing that early possession can trigger the effective date before completion.
Treating the seller as responsible for the tax.
Using residential bands for mixed use property.
Forgetting the surcharge applies to additional dwellings.

Worked question 1

Hana buys a freehold house for £400,000. It is her only home and no reliefs apply. Assume these residential rates: 0% on the first £125,000, 2% on the next £125,000 and 5% on the next £675,000. How much SDLT is payable?

A. £20,000
B. £12,500
C. £10,000
D. £2,500
E. £8,000

Answer: C. Slice the price. The first £125,000 is taxed at 0%, which is £0. The next £125,000 at 2% is £2,500. The remaining £150,000 at 5% is £7,500. The total is £10,000. A applies 5% to the whole price. B and E miscalculate a band, and D omits the top slice.

Worked question 2

Marco exchanges contracts on 1 September to buy a flat, with completion on 29 September. On 15 September, with the seller's agreement, he takes possession to start building work. When is the SDLT return due, assuming no other earlier event?

A. Within 14 days of 29 September, the date of completion.
B. Within 14 days of 15 September, the date he took possession.
C. Within 14 days of 1 September, the date of exchange.
D. Within 30 days of completion.
E. No return is due until the Land Registry asks.

Answer: B. Taking possession under the contract is substantial performance, which makes 15 September the effective date, so the return is due within 14 days: by 29 September. A takes completion, which applies only where there is no earlier event. C is wrong because exchange alone is not the effective date.

Checklist before you move on

Chargeable consideration, including VAT and debts assumed.
Residential, non residential or mixed use?
Rates and band slices as given in the question.
Surcharges or reliefs stated?
Effective date: completion or earlier substantial performance?
Return and payment within 14 days.

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Questions

Who pays SDLT?

The buyer, or the person acquiring the interest in land. The buyer's solicitor usually files the return and pays from the client's funds.

When must an SDLT return be filed?

Within 14 days of the effective date, which is normally completion but can be earlier on substantial performance.

Is SDLT charged on the whole price at one rate?

No. Each portion of the price is taxed at the rate for its band.

Sources: SRA: SQE1 Assessment Specification (from 1 September 2026); Finance Act 2003; GOV.UK: Stamp Duty Land Tax. Checked 10 November 2026.