Module 10 - Stamp Duty

Question 1

What are the 5 stamp duty exempt transfers?

Answer 1

1. Between trustees on change of composition of trustee or when shares are transferred to a trust.
2. A lifetime gift of shares.
3. A transfer of shares on marriage or civil partnership.
4. A transfer of shares in relation to a divorce or dissolution of civil partnership.
5. A transfer left in a will.

Question 2

When shares are being transferred between companies what is the cut off holding for stamp duty?

Answer 2

If the companies are 75% related no stamp duty will be paid.

If the parent is an individual not a company then the above rule does not count.

Question 3

What is the fine if a STF is not submitted within 30 days of the transaction of shares?

Not presented within one year?

Filing of fraudulent return?

Answer 3

Lower of £300 or the amount of duty payable.

The higher of the above amounts.

£3000

Question 4

Does SDLT affect people in Scotland?

Answer 4

No, they have LBTT

Question 5

If a property is both commercial and residential what stamp duty will you charge?

Answer 5

Non residential rates will always be charged on mixed use properties.

Question 6

For second properties what is the threshold value for additional stamp duty?

Answer 6

£40,000

Question 7

Do lease premiums get charged SDLT/ LBTT?

Answer 7

Yes

Question 8

Who completes the land transaction return form after the sale of a property?

Answer 8

The deadline is 30 days and it is filled out by a solicitor.

There is a fine of up to £3000 if this is done incorrectly.