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Property Taxation (SDLT, CGT, VAT) for SQE1

Part of our SQE1 Property Practice guide → View the full SQE1 Property Practice guide

14 May 2026

Property taxation sits at the intersection of tax law and conveyancing practice. SQE1 tests your knowledge of Stamp Duty Land Tax, Capital Gains Tax on property

Property Practice > Property Taxation (SDLT, CGT, VAT)

What is Property Taxation (SDLT, CGT, VAT)?

Candidates often lose marks on SQE1 by misremembering SDLT bands, reliefs, or the strict timeline for submitting the SDLT return.

Key Principles for SQE1

When tackling Property Taxation (SDLT, CGT, VAT) as part of Property Practice, remember:

  • Know the procedural steps and their correct sequence
  • Understand the legal effect and consequences of each stage
  • Be familiar with the standard documentation and processes
  • Apply the rules to practical client scenarios

Taxation obligations arise at completion and are completed during the post-completion and registration stage.

Exam Tip

Pay close attention to the order of steps in conveyancing scenarios. Exam questions often include answer options that describe correct actions at the wrong point in the transaction.

How This Appears in SQE1 Questions

SQE1 questions on this topic use transactional scenarios asking you to:

  • Identify the correct next step in the process
  • Select the appropriate document or search
  • Recognize the legal consequences of events
  • Advise on party obligations and timings

You must know the strict deadlines and calculation rules for SDLT, including the 14-day filing and payment window from the effective date.

Key patterns to watch for:

  • Questions that test whether you know the correct sequence
  • Scenarios involving both buyer and seller (or buyer and lender) obligations
  • Time-sensitive requirements and deadlines
  • Different procedures for different property types

Common Mistakes Students Make

Students often struggle with:

  • Confusing the order of steps in the conveyancing timeline
  • Applying rules from different stages to the wrong scenario
  • Overlooking procedural requirements
  • Forgetting time limits and deadlines

Quick Summary

  • Property Taxation (SDLT, CGT, VAT) requires understanding both the law and the practical steps involved, including SDLT return and payment deadlines.
  • Work systematically through the procedural timeline and practise applying the rules to realistic scenarios.

Want to test this now? Try a few SQE1-style questions below before moving on.

Test Yourself

Test yourself

Quick check questions based on this article.

Question 1

Scenario

A solicitor acts for a client who is selling a freehold residential property. The client purchased the property in 2012 for £250,000 and used it as his main residence from the date of purchase until 2020. In 2020, the client moved to a new property which became his main residence. He retained the first property and has rented it to a tenant since 2020. The client is now selling the first property for £450,000. The client has not made an election to treat any other property as his main residence during the period of ownership. The solicitor needs to advise the client on the Capital Gains Tax implications of the sale. The client has already used his annual exempt amount for the current tax year on a separate disposal of shares. The gain attributable to the property is calculated as £200,000 before any reliefs. The client occupied the property as his main residence from 2012 to 2020 and the property has been let from 2020 to the present date. The client has owned the property for a total period which includes both periods of occupation and letting. The client's other income places him in the higher rate tax band.

Which of the following best describes the Private Residence Relief position for this disposal?

Question 2

Scenario

A solicitor is acting for a buyer in the purchase of a freehold residential property in England for £375,000. The buyer is an individual who has never owned a residential property before and is purchasing the property as her main residence. The buyer's partner, who is not married to the buyer and is not named on the transfer deed, already owns a buy-to-let property in another part of the country. The buyer is funding the purchase with a 75% loan-to-value mortgage from a building society. The contract for sale was exchanged on 1 June and the agreed completion date is 1 July. The property is a semi-detached house built in 1985 and has been recently renovated by the seller. The seller is relocating to Scotland for employment purposes. The buyer has asked the solicitor for advice about the Stamp Duty Land Tax implications of the purchase. The solicitor is aware that first-time buyer relief may be available. The buyer has no connection with the seller and the transaction is at arm's length. The solicitor needs to file the SDLT return and arrange payment within the prescribed time limit.

Which of the following best describes the SDLT position in relation to this purchase?

Question 3

Scenario

A solicitor is advising a client on the capital gains tax implications of selling a residential property. The client purchased the property in March 2015 for £280,000. The client lived in the property as her only or main residence from March 2015 until September 2021, when she moved abroad for work. The property has been empty since September 2021. The client is now selling the property in March 2026 for £420,000. The client has not elected any other property as her main residence. The total period of ownership is 11 years. The client occupied the property for six years and six months and was absent for four years and six months. The solicitor needs to calculate the proportion of the gain that will be covered by Private Residence Relief. The client recalls that she left some furniture in the property when she moved abroad. The client has made no other capital disposals in the current tax year. The client's sister has been checking on the property periodically during the client's absence.

Which period of the client's ownership qualifies for Private Residence Relief?

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Practise Property Taxation (SDLT, CGT, VAT) Questions for SQE1

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