Stamp Duty & Stamp Duty Land Tax (SDLT)

Stamp Duty

Stamp Duty is payable on the transfer of shares in a company if the transaction is over £1,000.

Stamp Duty reserve tax is payable if shares are purchased through CREST system (e.g. through a stockbroker).

The rate in either case is 0.5% of the consideration given.

Stamp Duty Land Tax (SDLT)

SDLT is payable on land and property transactions in the UK.

There are various rate thresholds. If the value is above a threshold, SDLT is charged at that rate on the whole amount of the consideration.

Transfers by sale % of Consideration
Land and other property – Residential
£0 – £125,000 Nil
£125,001 – £250,000 2%
£250,001 – £925,000 5%
£925,001 – £1,500,000 10%
£1,500,000 and over 12%
Land and other property – Non-residential
£0 – £150,000 Nil
£150,001 – £250,000 2%
£250,000 and over 5%
Transfers by gift
Nil

 

 
Property that is not land, shares or interests in partnerships is no longer subject to stamp duty.
New Leases (lease duty)
Charge for the rental element of leases is 1% on the net present value (NPV) of the rental payments to the extent that the NPV exceeds £125,000 for residential property of £150,000 for non-residential property.Lease premiums are charged at the same rates as for freehold transfers, unless the annual rent exceeds £600, in which case there will be no zero band for the premium and the 1% charging band will apply to premiums up to £250,000.