Stamp duty

Question 1

Stamp duty

Answer 1

Applies to transfers of shares and securities which are effected by. apaper stock transfer form

0.5% of the consideration unless falls within a specific exemption. Duty is rounded up to the enarest £5

Question 2

SDRT - Stamp duty reserve tax

Answer 2

Applicable to transfers of shares and securities which are efefcted by an electronic paperless transaction. Transactions are made through CREST

Question 3

SDLT - Stamp Duty Land Tax

Answer 3

Applies to land transactions in England and Northern England.

Question 4

A land transaction is

Answer 4

a transfer of land or an interest in, or right over, land

Question 5

Transfers with no consideration

Answer 5

As Stamp duty is charged on the consideration, if there is no consideration there is an exemption. Examples include:
Gifts (except a gift of land to a connected ocmpany)
A transfer on divorce
Variation of will within 2 years of death
Transfers to charities

If transferred to a connected ocmpany, SDLT is due on the MV

Question 6

Transfers of assets within a stamp duty group

Answer 6

Relief from stamp duty is given for transfers of assets between companies in a stamp taxes group.

Question 7

What are the two condition to attract the relief?

Answer 7

The efefct must be to transfer the beneficial interst in property form one company to another

One company must be the parent of the other company or both companies must have a common parent company.

Question 8

Relief is withdrawn when

Answer 8

The transferee. company leaves the group within 3 years whilst still owning the land. NOT the transferor.