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%|
|• land (SDLT):|
|– up to threshold||0%|
|– threshold – £250,000||1%|
|– £250,001 – £500,000||3%|
|– over £500,000 (all properties)||4%|
|– £1,000,001 – £2,000,000 (residential)||5%|
|– over £2m (residential – 15% in some cases))||7%|
The threshold is £125,000 for residential property and £150,000 for commercial property.
The 15% rate applies to certain transfers to ‘non-natural persons’ such as companies. A new ‘annual tax on enveloped dwellings’ may apply to residential property owned by non-natural persons where the cost, or value when transferred, exceeds £2M.
Stamp duty is charged on the total consideration, and is always rounded up to the nearest £5.
SDLT is charged on the whole consideration and is rounded down to the nearest £1.
SDLT is charged on thegrant 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 net present value over the threshold.
Gifts, legacies and other ‘gratuitous transfers’ are generally not liable to duty at all.
Stamp duty and its related taxes are normally due from the purchaser within 30 days of the chargeable transaction.