7 - Stamp Duties

Question 1

Within how many days of the effective date of a property transaction, does the stamp duty have to be paid?

Answer 1

Within 14 days of the date of completion

Question 2

What is the anti avoidance rate for SDLT charged where companies and collective investment schemes buy properties over £500,000?

Answer 2

15%

Question 3

What is the surcharge from 1st April 2021 if a non resident buys a residential property in England or NI?

Answer 3

2%

Question 4

When shares are disposed of, can the CGT and SDRT be taken into account when calculating the chargeable gain?

Answer 4

Yes

Question 5

Joe purchased £4,460 of quoted shares electronically through a stockbroker. What SDRT will he pay?

Answer 5

£22.30

£4,460 x 0.5%

Question 6

who usually pays the SDRT on the purchase of shares?

Answer 6

The broker acting for the purchaser is usually responsible for paying SDRT to HMRC and the amount of SDRT payable is included in the stockbrokers contract note

Question 7

On 10th May 2020, Alex and Betty exchanged their respective residential homes in England.

Alex’s was valued at £260,000, Betty’s was valued at £225,000. Betty made up the difference of £35,000 by way of a cash payment to Alex. Neither own any other property. What is the SDLT on the two transactions?

Answer 7

Betty has acquired a residential property valued at £260,000 so she will pay SDLT of £3,000
£125,000 x 0%
£125,000 x 2%
£10,000 x 5%

Alex has acquired a residential property valued at £225,000 and so he will pay £2,000 SDLT
£125,000 x 0%
£100,000 x 2%

Question 8

How much SDLT would be paid on a property purchased for the purpose of a holiday home in England of £1M. The buyer already has two other properties they own?

Answer 8

£73,750

£125,000 x 3%
£125,000 x 5%
£675,000 x 8%
£75,000 x 13%