Stamp Duty

Shropshire Solicitors andrews ritson: Solicitors For You And Your Business

Guide To The Payment of Stamp Duty

Stamp duty, stamp duty reserve tax (SDRT) and stamp duty land tax (SDLT) are charged on transactions in shares and land.

 

The rates are:

Charged on total consideration

Rate

shares (stamp duty/SDRT)
– value up to £1,000 nil
– value over £1,000 0.5%
residential land (SDLT):
– up to threshold (£125,000) 0%
– £125,000.00 – £250,000 2%
– £250,001 – £925,000 5%
– £925,001 – £1.5 million 10%
– over £1.5 million 12%

Stamp Duty is payable at the applicable rate on the amount by which the portion of the purchase price of the property exceeds the relevant band.

Higher rate for additional residential properties

With effect from 1st April 2016, an additional 3% surcharge will apply to purchases which will result in 2 or more residential properties being owned by the purchaser. Download the HMRC Guidance Note for more detailed information.

To see how much Stamp Duty Land Tax is payable in relation to your purchase you can use the Stamp Duty Calculator.

The rates for Commercial Property transactions are:

  • up to threshold (£150,000) – Nil
  • £150,001 – £250,000 – 2%
  • Over £250,000  – 5%
Stamp Duty is payable at the applicable rate on the amount by which the portion of the purchase price of the property exceeds the relevant band.

Corporate Bodies

SDLT is charged at 15% where residential property is bought by a corporate body costing £500,000.00 or more. There are some exceptions to this such as where the property is used for a property rental business, resale trade or a property development or providing admission to visitors on a commercial basis.

stamp_duty

 

The threshold depends on whether the property is residential or commercial and whether it is in a “disadvantaged area”:

Residential

Commercial

General £125,000 £150,000
Disadvantaged £150,000 £150,000

The first sale of a new “zero carbon” property will be exempt from SDLT if the value is up to £500,000.Stamp duty is charged on the total consideration, and is always rounded up to the nearest £5.00 SDLT is charged on the whole consideration and is rounded down to the nearest £1.00 SDLT is charged on the grant of a lease on any premium (using the above rates) and on the discounted net present value of the rental stream. This charge is at 1% of the excess of the NPV over the threshold.Gifts, wills and other ‘gratuitous transfers’ are generally not liable to duty at all.

Stamp duty and its related taxes are normally payable by the purchaser within 30 days of the chargeable transaction.
Contact our Property Department for more information.