5. SDLT and SDRT

Question 1

Stamp Duty Land Tax (SDLT)

Answer 1

Self assessed tax on land transactions

Scotland - LBTT

Wales - LTT

Question 2

Residential Rates of SDLT

Answer 2

£0 - 125,000                       = 0%
£125,000 - 250,000           = 2%
£250,000 - £925,000        = 5%
£925,000 - £1,500,000.     = 10%
£1,500,000+                        = 12%

Question 3

Non-Residential Rates of SDLT

Answer 3

£0 - 125,000 = 0%
£125,000 - 250,000 = 2%
£250,000+. = 5%

Question 4

Additional Rates of SDLT

Answer 4

Additional Home: +3%

First Time Buyer on property up to £300,000: 0%

Anti-avoidance Rate (Company / CIS buying residential property £500,000+) 15%

Question 5

Leasehold Properties

Answer 5

Residential

• SDLT paid on Lease Premium using normal residential rates
• if NPV is more than £125,000 additional 1%

Non-Residential

• SDLT paid on Lease Premium using normal non-residential rates
• if NPV is between £150,001-£5m additional 1%
• if NPV is over £5m additional 2%

Question 6

Stamp Duty Reserve Tax (SDRT)

Answer 6

Paid on paperless transactions involving:

• shares in UK company (except for AIM and those listen on growth segments)
• shares in foreign company
• options
• rights from shares already owned
• interest in shares

Question 7

SDRT and Fund Managers

Answer 7

SDRT is payable on units in unit trusts and OEICs

However, when investor uses FM, SDRT is not payable

Question 8

Transfers using Crest

Answer 8

Crest automatically deducts SDRT and sends to HMRC

stockbroker settles with CREST and bills investor with additional fees

SDRT = 0.5% (rounded to nearest penny) based on what investor paid

Only payable on price paid is >£1,000 and therefore is recorded on a ‘stock transfer’ and stamped