Topic 7 - Stamp Duty

Question 1

When does stamp duty occur?

Answer 1

On the transfer of shares & Securities by formal instrument other than newly issued shares.

Paid by the purchaser
On the consideration payable.

Question 2

How do you calculate the stamp duty?

Answer 2

0.5%

The duty is rounded up to the nearest £5.
No charge if consideration is = £,1000

Question 3

What are the exemptions for stamp duty?

Answer 3

• Gifts where no conisderation given
• Divorce
• Deed of variation
• Transfers between 75% groups
• Takeovers and reconstructions (SD)

Exempt securities

• Govt stock
• Most company loan stock
• Unit trusts
• AIM shares

Question 4

When does stamp duty land tax occur?

Answer 4

Paid by purchaser on transfer or land and property, based on value and type of property.

Question 5

How you calculated SDLT?

Answer 5

Non-residential land and property

£150,000 or less = 0%
£150,001 to £250,000 = 2%
£250,000 + = 5%