Stamp Taxes

Question 1

When do you need to pay stamp duty?

Answer 1

Same time form submitted

Question 2

What are the OBT late stamp duty filing penalties for?

Answer 2

Not deliberate

Question 3

What to remember about OBT stamp duty late payment penalties?

Answer 3

1. Round down to £5
2. None if cost under £20
   (Penalty: £20, interest: £25)

Question 4

What to remember about stamp duty penalty interest?

Answer 4

1. Round down to £5
2. None if under £25
   (Penalty: £20, interest: £25)

Question 5

What are exempt from stamp duty?

Answer 5

New investments don’t get very rubberstamped

New shares
Intra-group transfers
Divorce
Gifts
Variation to will
Recognized growth markets

Question 6

What stamp duty do you pay if the transfer was paperless and what are the key features?

Answer 6

Stamp duty reserve tax
SDR’T’

Stockbrokers collect it automatically
Deadlines different (OBT)
Rounding: None
common penalTy regime

Question 7

SDRT exemptions

Answer 7

Don’t get gunge on the electric transfer

Group transfer
No consideration (e.g. gift)
Growth markets

Question 8

SDLT summary

Answer 8

On buying land and buildings

‘Land transaction form’ (Even if tax = 0)

First time buyers relief (Under obt 500k)

Exeptions: Think gifts of houses (quite a big gift I know!) dwelling gifts will grow pennies because no SDLT
1. Divorce
2. Gifts
3. Will variation
4. Group transfers UNLESS a. plans not to be group at transfer or b. not bona fide commercial reasons (I suppose businesses especially try to bend the rules by giving each other buildings…)
5. Property under 40k

Question 9

What to remember about the 3% extra SDLT charge for extra residences?

Answer 9

Refunded if it becomes your main residence