Stamp Duty & Stamp Duty Land Tax (SDLT)
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||
|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.