R03 SDLT, stamp duty and SDRT: free practice questions

1. Question 1 of 5

   Within what period must a buyer of English property file an SDLT return and pay the tax?

   Option A: By 31 January after the tax yearOption B: 30 days of exchange of contractsOption C: 14 days of the effective date, usually completionOption D: 60 days of completion of the purchase

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   The answer is C: 14 days of the effective date, usually completion

   SDLT must be returned and paid within 14 days of the effective date, usually completion, or earlier if the buyer pays for or takes possession of the property before completion.

   Why the other options are wrong

   A

   SDLT isn't paid through the income tax return.

   B

   The period runs from the effective date, usually completion.

   D

   60 days relates to CGT on UK residential property.

2. Question 2 of 5

   Cara, a first-time buyer, buys her first home in England for £420,000. What SDLT is due?

   Option A: £21,000Option B: £6,000Option C: NilOption D: £11,000

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   The answer is B: £6,000

   First-time buyers pay nothing up to £300,000 and 5% on the part between £300,000 and £500,000: £120,000 × 5% = £6,000.

   Why the other options are wrong

   A

   That's 5% of the whole price.

   C

   Only purchases up to £300,000 are completely free.

   D

   That uses the normal rates; first-time buyer relief applies up to £500,000.

3. Question 3 of 5

   Sue owns her home and buys a buy-to-let flat in England for £300,000. What SDLT is due?

   Option A: £5,000Option B: £20,000Option C: £15,000Option D: £30,000

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   The answer is B: £20,000

   Additional property rates (5% higher): £125,000 at 5% = £6,250; £125,000 at 7% = £8,750; £50,000 at 10% = £5,000. Total £20,000.

   Why the other options are wrong

   A

   Higher rates apply because she owns two properties at the end of the day.

   C

   The higher rates are 5%, 7% and 10% across the bands.

   D

   That charges 10% on the whole price.

4. Question 4 of 5

   Which SDLT surcharge applies to a non-UK resident buying a home in England for £600,000?

   Option A: No surcharge, as residence doesn't matter for SDLTOption B: 17% on the entire purchase priceOption C: An extra 5% on the slice above £500,000Option D: An extra 2% on top of the other rates

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   The answer is D: An extra 2% on top of the other rates

   Non-UK residents buying English residential property of £40,000 or more pay a 2% surcharge on top of all other rates, using a 183-day test around the purchase. Companies buying homes over £500,000 can face 17%, or 19% if also non-resident.

   Why the other options are wrong

   A

   There's a 2% non-resident surcharge.

   B

   17% applies to companies and collective schemes buying over £500,000.

   C

   The non-resident surcharge is 2% on top of all other rates.

5. Question 5 of 5

   Josie buys £8,000 of shares in a FTSE 100 company electronically through a broker. What SDRT is due?

   Option A: £40Option B: NilOption C: £4Option D: £80

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   The answer is A: £40

   SDRT is 0.5% of the consideration on paperless share purchases: £8,000 × 0.5% = £40. The broker usually pays it and shows it on the contract note.

   Why the other options are wrong

   B

   There's no de minimis for SDRT.

   C

   The rate is 0.5%, not 0.05%.

   D

   The rate is 0.5%, not 1%.

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