Stamp duty land tax (SDLT), stamp duty and stamp duty reserve tax (SDRT) are charged on many transactions in land and shares. It is normally due from the purchaser.
The rates are:
|Rates on sales:||% of Total Consideration|
|Land and Buildings||Residential||Non-residential|
|Nil if consideration up to||£125,000||£150,000|
|Threshold – £250,000||1%||1%|
|£250,001 – £500,000||3%||3%|
|£500,001 – £1,000,000||*4%||4%|
|£1,000,001 – £2,000,000||*5%||4%|
|Shares (nil if consideration up to £1,000)||0.5%|
|*15% on transfer to ‘non-natural person’ e.g. a company|
SDLT is charged on the total consideration and is rounded down to the nearest £1.
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 net present value over the threshold.
Stamp duty is charged on the total consideration, and is always rounded up to the nearest £5.
Gifts, legacies and other ‘gratuitous transfers’ are generally not liable to duty at all.
SDLT, stamp duty and SDRT are normally due within 30 days of the chargeable transaction.