Stamp Duties

Question 1

What is sdlt

Answer 1

This is stamp duty land tax

Question 2

How is stamp duty land tax paid and what time frame by

Answer 2

It is assessed on a self assessment and paid to hmrc via a solicitor

Should be paid 30 days from transaction and this will be reduced to 19 days in March 2019

Question 3

What are the tax bands for res property

Answer 3

125k is 0%
125k to 250k is 2%
250k to 925k is 5%
925k to 1.5mill is 10%
Above 1.5mill is 12%

Question 4

What are the non res tax bands

Answer 4

Up to 150k 0%
150k to 250 k 2%
Above 250k is 5%

Question 5

How is a res lease hold property charged sdlt

Answer 5

At a rate of 1 % on present val of rent over the term of a lease with val that exceeds 125k

Question 6

How is present value calculated for lease properties

Answer 6

[Annual rent x number of years of lease] then apply discount factor which is the lower val of a future payment compared to a payment made now

Question 7

How is a non res lease property sdlt calculated

Answer 7

Same has the res property but the 1% starts on val between 150,001 k to 5 mill
Then 2% over 5mill

Question 8

What things in a property is sdlt not payable on

Answer 8

Fixture and fittings such as carpets white goods kitchenware

It is also not payable in the conveyancing with a connection in a divorce or judicial separation

Question 9

Describe what relief first time buyers get with sdlt

Answer 9

Don’t pay it on property that’s 300k or less
Max amount is 500k where they pay the 5% difference from 300k and 500k
If property val is over 500k, then normal rules apply

Question 10

What do companies pay for sdlt on property over 500k

Answer 10

15% due to anti avoidance rate

Question 11

What is lbtt

Answer 11

Land and building transaction charge in Scotland

Question 12

What are the lbtt res property band rates

Answer 12

145k0%
145 to 250k 2%
250k to 325k 5%
325k to 750k 10%
750k plus 12%

Question 13

What is lbtt band for non res property

Answer 13

150k 0%
150k to 350k 3%
350k plus 4.5%

Question 14

What is the lbtt for first time buyers threshold

Answer 14

175k

Question 15

What is ltt

Answer 15

Land transaction tax for Wales

Question 16

What are the Ltt tax bands for res property

Answer 16

180k 0%
180k to 250k 3.5%
250k to 400k 5%
400k to 750k 7.5%
750k to 1.5mill 10%
1.5mill plus 12%

Question 17

What is the additional % on another res property in the whole uk

Answer 17

The is 3% added on the normal rate for any second property be it res or non res

Refund can be claimed if other house sold but in all can only get it if they hold a single property

Question 18

What is stamp duty and stamp duty reserve tax

Answer 18

These are payments for buying shares, stock and unit trusts

Question 19

How do you pay for sd and sdrt

Answer 19

Done via a stock broker

Question 20

What is the rate for sd

Answer 20

Rate is 0.5% on anything above £1000 and is rounded to the nearest £5

Question 21

What is the rate for sdrt

Answer 21

This is also 0.5% on anything above £1000 but is rounded to the nearest penny as it’s done via crest

Question 22

Are sd and Sdrt allowable for deduction during gains calculated

Answer 22

Yes they are

Question 23

What kind of shares are not charged sd or sdrt

Answer 23

Those that are listed on growth markets like aim and etfs