Stamp duty

Question 1

Give 3 types of stamp duty

Answer 1

Stamp duty- Payable on purchase of shares
Stamp duty reserve- Payable on purchase of shares by paperless transfer
Stamp duty land tax- payable on purchase of land (VAT inc)

Question 2

What is the charge, administration and penalties on stamp duty

Answer 2

0.5% to the neared £5 and charged on more than £1000

submit within 30 days

Interest must be above £25 and rounded down to nearest £5. Up to 12 months is 10% capped at £300. 12-24 months is 20% and to 36 months is 30%

Question 3

List 5 exemptions to stamp duty

Answer 3

o Issue of new shares
o Intra group transfer of shares (group for these purposes is a 75% group)
o Gifts
o Divorce arrangements
o Variations of wills

Question 4

SDRT charge, admin and exemptions

Answer 4

0.5% of consideration with no rounding.

Automatically collected by stockbrokers and must be paid 14 days after trade date or 7th day of month following month agreement made

Transfers between corp group members and gifts are exempt or transfers of AIM

Question 5

SDLT on lease

Answer 5

payable on total rent payable over term and lease premium (lump sum at start)