Ch 24: Stamp taxes

Question 1

What do you pay stamp duty reserve tax on?

Answer 1

On electronic transfer of shares and securities

Question 2

What is the rate of SDRT?

Answer 2

0.5%, no rounding

Question 3

What do you pay stamp duty on?

Answer 3

Payable by the purchaser on the paper transfer of shares and securities

Question 4

What is the rate of Stamp Duty tax?

Answer 4

0.5%, rounded to the nearest £5

Question 5

What do you pay stamp duty land tax on and what is it based on?

Answer 5

• Chargeable on land and building transactions, payable by the purchaser
• based on the VAT inclusive consideration (not all property has VAT - only if it has been OTT or is a new commercial building)

Question 6

What is the rate of SDLT?

Answer 6

The rate depends on whether the land is used for residential or non-residential purposes (SDLT on residential property is not examinable)

Question 7

What are the exempt transfers for stamp duty?

Answer 7

• gifts
• divorce arrangements
• variations of will
• transfers between 75% group companies (unless transferee co. leaves group within 3 years of transfer)