Chapter 7 - Stamp Duty

Question 1

What is Stamp Duty Land Tax?

Answer 1

A tax paid by a person who acquires an interest in land, usually done through the completing solicitor

Question 2

What part of the purchase price is Stamp Duty Land Tax not paid on?

Answer 2

Anything that is attributable to carpets curtains or anything being left in the house. However you can not use unrealistically high valuations of these.

Question 3

Additional residential properties are subject to what further Stamp Duty Land Tax?

Answer 3

An additional 3% in each band

Question 4

What is Stamp Duty paid on, what rate is it and what is it rounded to the nearest?

Answer 4

Stamp Duty is paid on the transfer of shares through stock transfer forms it is payable at 0.5% and is rounded up to the nearest £5.

Question 5

What is Stamp Duty Reserve Tax paid on, what rate is it and what is it rounded to the nearest?

Answer 5

Stamp Duty Reserve Tax is paid on the transfer of shares through electronic methods it is payable at 0.5% and is rounded to the nearest penny.

Question 6

What is Stamp Duty and Stamp Duty Reserve Tax NOT paid on?

Answer 6

Companies listed on growth markets such as AIM and ICAP.

UK domiciled exchange traded funds (ETFs)