Property Taxation (SDLT) Flashcards
What 3 taxes are possible on property?
(1) Stamp Duty Land Tax (SDLT) / Land Transaction Tax (LTT)
(2) VAT
(3) Capital Gains Tax
For RESIDENTIAL property:
(1) What 2 taxes may be payable and who will pay them?
(2) When will a seller not pay CGT (that is typically the case)?
(1)
(a) BUYER - SDLT / LTT
(b) SELLER - CGT
(2) Property is their ‘Principal Private Residence’ (PPR Relief)
For COMMERCIAL property:
(1)
BUYER:
(a) SDLT / LTT
(b) VAT
SELLER:
(a) IF individul - CGT
(b) IF company - Corporation Tax
For RESIDENTIAL property (NOT first time buyers) what are the rates of SDLT?
0-£250,000 - 0%
£250,001-£925,000 - 5%
£925,001 to £1.5 million - 10%
Above £1.5 million - 12%
(1) For first time-buyers to qualify for SDLT relief what is the maximum house price?
(2) What rates of SDLT do first time buyers pay?
(1) £625,000
(2)
0-£425,000 - 0%
£425,000 - £625,000 5%
(1) What SURCHARGE (additional % of SDLT) is charged for SECOND HOME / INVESTMENT PROPERTY residential buyers (i.e. own 2 or more residential properties?
(2) What is the exception to this?
(1) 3%
(2) Property REPLACING their MAIN RESIDENCE + has been sold (I.e. completion)
For COMMERCIAL property, what are the rates of SDLT?
£0 - £150,000 - 0%
£150,001 to £250,000 - 2%
Above £250,000 - 5%
In a property transaction, when must SDLT be paid to HMRC?
Within 14 days of completion
What are 2 key differences between SDLT and LTT?
(1) NO relief for first time residential buyers
(2)
SDLT - paid to HMRC within 14 days of completion
LTT - paid to HMRC within 30 days of completion
(1) What SURCHARGE (additional % of SDLT) is charged for NON-UK RESIDENTS?
(2) What is a ‘Non-UK Resident’?
(1) 2%
(2) NOT been in the 6 months or > / past 12 months
Up to what will there be No SDLT paid (I.e 0% rate) for:
(1) Residential property
(2) Residential property (first time buyer)
(3) Commercial property
(1) £250,000
(2) £425,000
(3) £150,000
