Glossary definition
SDLT (Stamp Duty Land Tax)
A tax payable on the purchase of land and property in England and Northern Ireland, calculated on a tiered basis with rates increasing for higher-value transactions. Additional SDLT surcharges apply to purchases of additional residential properties and to non-UK resident buyers.
Definition
A tax payable on the purchase of land and property in England and Northern Ireland, calculated on a tiered basis with rates increasing for higher-value transactions. Additional SDLT surcharges apply to purchases of additional residential properties and to non-UK resident buyers. SDLT is a significant upfront cost on site acquisitions and must be factored into the development appraisal and funded either from the facility or the developer's equity.
See also
Closely related terms.
CGT (Capital Gains Tax)
A tax on the profit made when you sell or dispose of an asset that has increased in value, including property.
Residual Land Value
The value of a development site calculated by taking the gross development value of the completed scheme and deducting all development costs including build costs, professional fees, finance costs, and developer profit.
Day One Advance
The initial tranche of a development or bridging loan released on the first day of the facility, typically used to fund the site acquisition.
Further reading
Guides that touch this term.
Guide
Hidden Arrangement Fees in Development Finance: What Lenders Don't Tell You
Arrangement fees in development finance are rarely as straightforward as a single percentage. This guide exposes the hidden layers of fees that lenders charge and shows you how to negotiate effectively.
9 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readReadGuide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readRead
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