Calculation of SDLT and LTT (CGT) Flashcards
What is the SDLT rate on the portion of a residential property price between £250,001 and £925,000?
A. 0%
B. 3%
C. 5%
D. 10%
C. 5%
Explanation: Residential SDLT is charged at 5% for the slice of the price between £250,001 and £925,000.
Which document confirms SDLT has been paid and is required for Land Registry registration?
A. DS1 certificate
B. AP1 form
C. SDLT5 certificate
D. TR1 form
C. SDLT5 certificate
Explanation: The SDLT5 certificate is issued after SDLT is submitted and paid. It must be included with the Land Registry application.
What is the SDLT surcharge rate for purchasing a second residential property?
A. 2%
B. 3%
C. 5%
D. 10%
B. 3%
Explanation: An extra 3% is added to the entire purchase price if the buyer is buying an additional residential property.
Which of the following is excluded from SDLT calculation in a property purchase?
A. White goods and furniture
B. Mortgage interest
C. Stamp Duty reserve tax
D. Estate agent fees
A. White goods and furniture
Explanation: Contents like white goods and furniture can be itemised separately and are not subject to SDLT if valued reasonably.
What is the deadline for submitting an SDLT return and paying the tax after completion?
A. 7 days
B. 14 days
C. 21 days
D. 30 days
B. 14 days
Explanation: SDLT returns and payments must be submitted to HMRC within 14 days of completion.
A first-time buyer purchases a home in England for £400,000. How much SDLT is payable?
A. £0
B. £2,500
C. £5,000
D. £20,000
A. £0
Explanation: First-time buyers pay no SDLT on the first £425,000. Since the price is below that, no SDLT is due.
A buyer purchases a second residential property in England for £450,000. What is the additional SDLT due due to second property rules?
A. £13,500
B. £2,500
C. £9,500
D. £25,000
A. £13,500
Explanation: 3% of £450,000 is £13,500, added as a surcharge for owning more than one property.
A commercial property in England is bought for £500,000. What is the total SDLT payable?
A. £12,500
B. £15,000
C. £17,500
D. £20,000
C. £17,500
Explanation:
First £150,000 = 0%
£150,001–£250,000 = 2% = £2,000
£250,001–£500,000 = 5% = £15,500
Total = £17,500
A house is purchased for £700,000. What SDLT is due (not a first-time buyer)?
A. £25,000
B. £22,500
C. £30,000
D. £27,500
D. £27,500
Explanation:
First £250,000 = 0%
£250,001–£700,000 = £450,000 × 5% = £22,500
Total SDLT = £22,500
A buyer purchases a house for £600,000. They are a first-time buyer. What SDLT is payable?
A. £8,750
B. £6,250
C. £0
D. £3,750
A. £8,750
Explanation:
First £425,000 = 0%
Next £175,000 × 5% = £8,750
A company buys a second property in England for £1.2 million. What is the additional surcharge?
A. £36,000
B. £40,000
C. £42,000
D. £45,000
B. £36,000
Explanation: 3% of £1.2 million = £36,000. Companies always pay the surcharge on residential properties.
A shop in Wales is purchased for £750,000. What is the LTT?
A. £25,250
B. £27,000
C. £22,500
D. £30,000
A. £25,250
Explanation:
First £225,000 = 0%
Next £25,000 × 1% = £250
Remaining £500,000 × 5% = £25,000
Total = £25,250
A house in Wales is bought for £500,000 as a second home. What happens to LTT?
A. It is charged at higher residential rates.
B. It is reduced for second homes.
C. It is not payable.
D. Only the main home surcharge applies.
A. It is charged at higher residential rates.
Explanation: In Wales, LTT is increased for second homes. There’s no first-time buyer relief either.
SDLT must be submitted and paid within how many days of completion?
A. 7 days
B. 21 days
C. 30 days
D. 14 days
D. 14 days
Explanation: In England, SDLT must be submitted and paid to HMRC within 14 days of completion or penalties may apply.
In residential transactions, what is the standard SDLT rate applied to the slice between £250,001 and £925,000?
A. 3%
B. 2%
C. 10%
D. 5%
D. 5%
Explanation: This slice is taxed at 5% under normal residential SDLT rules.
A buyer purchases an additional residential property for £600,000. What is the additional SDLT surcharge applied to the whole price?
A. 2%
B. 1%
C. 4%
D. 3%
D. 3%
Explanation: An extra 3% is applied across the entire price when buying a second residential property.
