MRT1 · Mortgage Law, Practice and Application
LO7 and LO8 are where MRT1 sets its sums. You will be asked to work out SDLT, LBTT or LTT on a price, a higher lending charge on the slice above a threshold, an early repayment charge, a Land Registry fee or the true cost of a fee product. The other questions test who pays and who is protected: the higher lending charge protects the lender, a guarantor must be assessed and independently advised, the seller pays the estate agent. Learn the bands for all three UK tax regimes, because the exam names the nation and expects you to switch tables.
11 min read6 sections
Checked against: Walbrook (formerly LIBF) CeMAP specification v14, MRT1 LO7 (AC7.1-7.2) and LO8 (AC8.1-8.3); gov.uk SDLT pages (rates from 1 Apr 2025); Revenue Scotland LBTT and ADS; Welsh Revenue Authority LTT; HM Land Registry Scale 1; FCA Handbook MCOB 4.4A, 4.6A, 5A, 11.6.2R, 12.3, 12.5; checked 11 Oct 2026. Independent prep, not endorsed by Walbrook (formerly LIBF).
Stamp Duty Land Tax is charged slice by slice, like income tax. Each rate applies only to the part of the price inside its band. The rates below have applied since 1 April 2025 (gov.uk, checked 11 October 2026). The Autumn Budget on 28 October 2026 could change them, so check the date in any question.
| Portion of price | Standard | First-time buyer (price £500,000 or less) | Higher rates (additional dwellings) |
|---|---|---|---|
| Up to £125,000 | 0% | 0% | 5% |
| £125,001 to £250,000 | 2% | 0% | 7% |
| £250,001 to £300,000 | 5% | 0% | 10% |
| £300,001 to £500,000 | 5% | 5% | 10% |
| £500,001 to £925,000 | 5% | No relief: standard rates on the whole price | 10% |
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From 1 April 2025, first-time buyers in England and Northern Ireland pay no SDLT on the first £300,000 and 5% on the part from £300,001 to £500,000. If the price is over £500,000 the relief is lost and standard rates apply (gov.uk, checked 11 October 2026).
Since 31 October 2024 the higher rates for additional dwellings in England and Northern Ireland are 5 percentage points above the standard rates. In Scotland the Additional Dwelling Supplement is 8% of the whole price from 5 December 2024 (gov.uk; revenue.scot).
| £925,001 to £1.5m | 10% | No relief | 15% |
| Above £1.5m | 12% | No relief | 17% |
| Case | Working | SDLT |
|---|---|---|
| £350,000, home mover | 2% × £125,000 + 5% × £100,000 | £7,500 |
| £400,000, first-time buyers | 5% × £100,000 | £5,000 |
| £520,000, first-time buyer | No relief: £2,500 + 5% × £270,000 | £16,000 |
| £300,000, buy-to-let by a home-owner | £6,250 + £8,750 + £5,000 | £20,000 |
| £280,000, non-resident first-time buyer | 2% × £280,000 | £5,600 |
Trap: using the old £250,000 nil band or £425,000 first-time buyer threshold, or applying first-time buyer relief to the first £500,000 of a £520,000 purchase.
Takeaway: Slice the price. First-time buyers: nothing to £300,000, 5% to £500,000, no relief above. Second homes: add 5% from the first pound.
Scotland and Wales have their own land transaction taxes with different bands. The exam names the town or nation; switch tables accordingly.
| LBTT band (Scotland) | Rate | LTT band (Wales, main rates) | Rate |
|---|---|---|---|
| Up to £145,000 | 0% | Up to £225,000 | 0% |
| £145,001 to £250,000 | 2% | £225,001 to £400,000 | 6% |
| £250,001 to £325,000 | 5% | £400,001 to £750,000 | 7.5% |
| £325,001 to £750,000 | 10% | £750,001 to £1.5m | 10% |
| Over £750,000 | 12% | Over £1.5m | 12% |
| £300,000 purchase | England (SDLT) | Scotland (LBTT) | Wales (LTT) |
|---|---|---|---|
| Home mover | £5,000 | £4,600 | £4,500 |
| First-time buyer | £0 | £4,000 | £4,500 (no relief) |
| Additional dwelling | £20,000 | £28,600 (£4,600 + 8% ADS) | £19,950 |
Trap: using the English bands for a purchase in Cardiff or Glasgow, giving a Welsh first-time buyer a relief that does not exist, or using the old 6% ADS.
Takeaway: Scotland: nil to £145,000, £175,000 for first-time buyers, ADS 8% of the whole price. Wales: nil to £225,000 for everyone, no first-time buyer relief.
