Stamp Duty Flashcards
1
Q
- Deductions from Purchase Price
- Situation where ownership passes from one spouse to another. Divorce etc
A
- Can deduct value of chattels such as carpets & curtains ()not fixtures). HMRC will challenge high figures
- SDLT not payable on divorce/judicial separation
2
Q
Who Pays SDLT
- How
- When by
- When is surcharge applicable and how much
- Under what value is surcharge not applicable
- What hap[pens if main being sold and 2nd property is to replace
A
- Buyer pays SDLT
- Solicitor normally pays on buyers behalf
- within 14 days of effective ate of transaction (normally completion). If move in earlier take that date
- Surcharge on 2nd property of 3%
- Not applicable under £40k
If main sold after 2nd property, then refund of surcharge if within 3 years
3
Q
First Time Buyer
- What’s main difference
A
- No SDLT for FTB on first £300k (provided less than £500k) - 5% above £300k
4
Q
Stamp Duty (Shares) and Stamp Duty Reserve Tax (SDRT)
- What are they - difference
- Exceptions to both
A
- Stamp Duty - payable on documents that transfer ownership of shares, stocks and UTs
5% of PP rounded up to nearest £5 - SDLT As above but electronically
5% rounded up or down tho nearest penny - NA for shares on growth markets AIM and UK domiciled ETF
Also transaction less than £1k
5
Q
Stamp duty in trusts
- Bare
- IIP/Life interest
- Discretionary
A
Bare- allowance for beneficiaries circumstances ie if FTB would qualify at normal rates
IIP - Treated as owning the property. If purchase is replacing main property, basic rates apply
Discretionary - 3% surcharge applies (higher)
