Chapter 12: Stamp Duty Land Tax Flashcards

1
Q

When must a person who buys or leases land or buildings in the UK must send a SDLT return?

A
  • Within 14 calendar days of completion.
  • SDLT payment must also be made within the same 14 day period.
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2
Q

What is SDLT based on?

A

The purchase price of land and/or the value of any other consideration
E.g. Work done in exchange for property

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3
Q

If no SDLT is payable, must a person still submit a SDLT return?

A

Yes.

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4
Q

How is the value of a property calculated if it was transferred to a company in exchange for shares?

A

The transaction is deemed to be at market rate value.

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5
Q

Which transactions are exempt from SDLT?

A
  • Property transfered as a gift
  • Property transferred to a spouse
  • Property transferred to former spouse on divorce
  • Property transferred under a variation of a will
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6
Q

What is the conequence of late payment of SDLT / submission of the SDLT form?

A

Fixed penalities may apply if the SDLT form is submitted late, even if no SDLT is payable

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7
Q

What is the current nil rate band for residential properties?

A

The first £250,000 is taxed at a 0%

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8
Q

What is the current nil rate band for non-residential properties?

A

The first £150,000 is taxed at a 0%

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9
Q

What are the tax consequences if a person already owns a residential property and buys an additional residential property?

A

An extra 3% is added to each residential tax band

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10
Q

When will additional charges for additional residential purchases not apply?

A
  • When a transaction is below £40,000
  • If the new property replaces the purchaser’s only or main residence
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11
Q

Is SDLT chargeable on the grant of a new lease?

A

Yes

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12
Q

How is SDLT on the grant of a new lease calculated?

A

The tax may be based on either or both of:
1. Lease premium paid
2. Total rent payable over entire term of the lease

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13
Q

What is first-time relief for purchase of first residence?

A

0% on the first £425,000
5% on £425,001 - £625,000

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14
Q

When will first-time home buyers’ relief not apply?

A
  • When the purchase price exceeds £625,000
  • If the purchase price exceeds this amount, no relief is given
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15
Q

What is the position when there are several linked transactions?

A

The consideration for each transaction is taxed collectively opposed to taxing each individual transaction

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16
Q

What are the two types of tax relief available for linked transactions?

A
  1. Pay tax on the mean consideration (aggregate consideration ÷ by the number of dwellings) - available if more than one residential property purchased
  2. Pay the non-residential propety rates if more than six residential properties are purchased in a single transaction