Other Taxes

Question 1

When must SDLT be paid?

Answer 1

It must be paid within 14 days of the ‘effective date of the transaction’ (usually the completion date)

Question 2

Within how many years can SDLT on a second property be reclaimed?

Answer 2

If the second property is a replacement, then a reclaim of the additional SDLT can be made, provided the main residence is sold with 36 months.

Question 3

A 2% surcharge applies, for who?

Answer 3

non-UK residents purchasing residential property for over £40,000 in England & Northern Ireland.

Question 4

What are the first time buyer SDLT rates?

Answer 4

0% up to £450,000

£451,000 - £600,000 = 5%

Question 5

Which shares to do you not pay SD on?

Answer 5

share transactions for companies listed on ‘growth markets’ (e.g. AIM and ISDX).

UK domiciled exchange traded funds (ETFs) (Most of these are currently domiciled offshore though)

Question 6

When is stamp duty payable and what is the rate and rounding?

Answer 6

Paper versions of the transactions use plain and simple Stamp Duty.

It is more likely to apply to shares where the companies are probably un-listed, or even un-quoted on an exchange. These tend to be smaller, family company shares.

0.5% rounded to nearest £5

Question 7

When is SDRT payable and what is the rate?

Answer 7

shares bought via a stockbroker are usually transferred electronically and so there is no stock transfer form to physically ‘stamp’ (which is what used to happen).

These electronic or ‘paperless’ transactions are subject to Stamp Duty Reserve Tax (SDRT).

0.5%