6): Basics of SDLT/LTT Flashcards
(11 cards)
What is SDLT and when is it payable?
SDLT (Stamp Duty Land Tax) is payable on property or land purchases in England.
Must be paid within 14 days of completion to HMRC.
What is LTT and where is it applicable?
LTT (Land Transaction Tax) applies in Wales, equivalent to SDLT.
What are the SDLT thresholds for residential properties?
£250,000 for general residential property.
£425,000 for first-time buyers purchasing up to £625,000
(SDLT applies to £425,001–£625,000 portion).
What is the SDLT threshold for non-residential properties?
£150,000.
What determines the SDLT amount payable?
SDLT rate bands above the thresholds.
Date of purchase.
Purchase consideration amount.
Available exemptions (e.g. first-time buyer relief).
What qualifies as a taxable supply for VAT?
Supply made in the UK.
By a taxable person in business.
For consideration (payment).
Not exempt from VAT.
What are the three rates of VAT?
Standard rate: 20%
Reduced rate: 5% (e.g. domestic energy)
Zero rate: 0% (e.g. books, water services, children’s clothes)
What is output VAT and how is it handled?
VAT added by a business to its sales.
Payable to HMRC.
What is input VAT and how is it reclaimed?
VAT a business pays on goods/services.
Reclaimed by offsetting against output VAT or refunded by HMRC.
When must a business register for VAT?
When turnover exceeds £90,000.
May register voluntarily under this threshold.
What obligations does VAT registration impose?
Must issue VAT invoices.
Submit VAT returns every 3 months.
Calculate and pay net VAT (Output - Input).
