Stamp duty when the property price is in foreign currency
Foreign currency and SDLT
A property price in a foreign currency must be converted into sterling for SDLT.
- Start with the London closing rate on the effective date.
- Check whether the sale used a different exchange rate.
- Keep documents supporting the rate used.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty when the property price is in foreign currency
If you buy property for euros, dollars or another currency, stamp duty land tax must still be worked out in pounds. The exchange rate can change the amount used for SDLT. That can affect your tax bill.
What this rule is about
Before SDLT can be calculated, a foreign-currency price must be given a sterling value. The transaction’s effective date is the key date, and although this is usually completion, special SDLT rules can sometimes make another date the effective date. That date matters.
What the official source says
HMRC’s manual mirrors the legislation. It says that the foreign-currency amount is converted into sterling on the effective date.
- Use the London closing exchange rate on that date.
- Use a different rate if the parties used it for the transaction.
- Work out the amount in pounds, not the later payment value.
What this means in practice
Rather than automatically using the rate from when you agreed the price, check the effective date, because exchange movements may mean the sterling amount differs by completion. Timing can change the figure.
- Check the effective date first.
- Keep the exchange rate used in the SDLT calculation.
- Check whether the sale documents use their own rate.
How to analyse it
Ask these questions in order. They help you avoid using the wrong date or rate.
- Is any part of the property price stated in a foreign currency?
- What is the transaction’s effective date?
- What was the London closing rate on that date?
- Did both sides use a different rate for the sale?
Example
Leah agrees to buy a flat for €200,000. To calculate SDLT, she must convert that amount into pounds using the London closing rate on the effective date, unless her sale documents use a different exchange rate for the deal, which may apply instead. The documents can matter.
Why this can be difficult in practice
People often look at the rate when they sent money or signed the contract. That may not be the right rate. The important point is the rate used under the SDLT rule.
- Completion may not always be the effective date.
- A bank’s payment rate may differ from the relevant rate.
- Documents should clearly show any different rate used.
Key takeaways
- Convert a foreign-currency price into pounds for SDLT.
- Start with the London closing rate on the effective date.
- A different sale rate may apply if the parties used it.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 Schedule 4 para 9 — converting foreign-currency consideration into sterling
- FA 2003 section 119 — setting the transaction’s effective date
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- The legislation does not prescribe what evidence will show that the parties used a different exchange rate for the transaction.
- The supplied statutory text is current only to 17 November 2025, so the rule should be checked against current legislation for later transactions.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The signed contract and any documents stating the currency or exchange rate used.
- Completion statements and payment records.
- The date that is the effective date under the SDLT rules.
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION Stamp duty when the property price is in foreign currency [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 Schedule 4 para 9 - converting foreign-currency consideration into sterling https://www.legislation.gov.uk/ukpga/2003/14/schedule/4/paragraph/9/2025-11-17 - FA 2003 section 119 - setting the transaction's effective date https://www.legislation.gov.uk/ukpga/2003/14/section/119/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm04050 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - The legislation does not prescribe what evidence will show that the parties used a different exchange rate for the transaction. - The supplied statutory text is current only to 17 November 2025, so the rule should be checked against current legislation for later transactions. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 31 August 2026
Useful article? You may find it helpful to read the original guidance here: Stamp duty when the property price is in foreign currency
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