Stamp Duty Land Tax

Question 1

What is the additional charge for additional residential purchases? And when does it apply?

Answer 1

3% increase in each band
- applies to any second residential property for consideration of £40,000 or more

Question 2

What relief is available for first time owners?

Answer 2

IF the property is £500,000 or less then relief is available.

Applicable relief: 0% SDLT on first 300,000 and then 5% on next 200,000.

Question 3

What relief is available when 6 or more residential properties are purchased?

Answer 3

The purchaser can choose to apply non-residential SDLT rates instead of the residential rates.

Question 4

How are linked transactions taxed for SDLT?

Answer 4

Relief available -

Total consideration for all the properties divided by number of properties = average cost per property.

NB additional 3% applies.

Question 5

How is SDLT payable on lease?

Answer 5

Two separate payments -

1. on premium
2. on net present value of the rent

each dealt with separately! So don’t add to determine which limit they fall into!

Question 6

What are the 4 types of exempt transactions for the purposes of SDLT?

Answer 6

1. Transfers as gifts
2. Transfers to spouse
3. Transfesr to former spouse upon divorce
4. Transfers under a variation of will IF within 2 years of death.

Question 7

What are the penalties for late payment of SDLT?

Answer 7

1. form filed up to 3 months late? £100
2. form filed more than 3 months late? £200

Question 8

When is SDLT payable

Answer 8

Form is due 14 days after completion

EVEN IF NO SDLT PAYABLE!