Stamp taxes

Question 1

What are stamp taxes?

Answer 1

Stamp taxes are taxes paid by the purchaser when they purchase shares and securities or land and buildings.

Question 2

What is stamp duty?

Answer 2

Stamp duty applies to the transfer of shares and securities which are effected by a paper stock transfer form. Stamp duty is payable by the purchaser.

Question 3

What is the stamp duty rate?

Answer 3

The rate for stamp duty is 0.5% of consideration unless exemptions apply.

Question 4

What is stamp duty reserve tax?

Answer 4

Is a tax that is applied when shares are transferred electronic paperless transaction. The rate is still 0.5%

Question 5

What is stamp duty land tax?

Answer 5

Stamp duty land tax is tax that is payable on consideration for a land transaction (and can include buildings). It is payable by the purchaser.

Question 6

What are the rates for stamp duty land tax with regards to non residential properties?

Answer 6

Up to 150k = 0%
150k to 250k = 2%
250k and above = 5%

Question 7

What are the exemptions from stamp tax?

Answer 7

If there is no consideration then no stamp tax is due. Examples would be gifts, transfer on divorce, variations of a will and transfers to charities (if the shares or land are used foe charitable purposes).

Question 8

What could cause stamp duty land tax relief to be withdrawn?

Answer 8

If a company in a group transfers land to another company in the group and the receiving company leaves the group within 3 years, then stamp duty land tax relief is withdrawn.