CTA Stamp duties Flashcards
(10 cards)
True or false: If an instrument is not stamped it cannot be used as evidence in civil proceedings?
True
Stamp duty is based on the value of the consideration.
There is no stamp duty on shares purchased for a maximum of?
£1,000
Some transfers are exempt from stamp duty.
What are examples?
- Gift
- Transfer to trust
- Transfer on marriage / divorce
- Transfer by a liquidator
- Transfer to AIM
- Shares in SIPs
- Repurchase of own shares held on overseas branch register
- Units in Exchange Traded fund (ETF)
There is an exemption from stamp duty between two companies in a group.
Group in this sense means
75%
*The transfer must be adjudicated
If a partnership transfers land into a limited company, the charge will be based on the ….
percentage change in ownership
*if the interest in the property is the same before and after the incorporation, then the chargeable consideration is NIL and no SDLT due
Calculating chargeable consideration for partnership transfer into ltd company is found in para 18.
The formula is MV x (100-SLP) %
this means…
MV is the market value of property transferred
SLP is the sum of lower proportions, ie
the partners and their connected parties who continue to own an interest in the property after the transaction. They are added together to find SLP
For SDLT, transfers to connected companies are at not less than?
MV
Transfers to LLP’s on incorporation are exempt from SDLT.
True or false
True
SDLT returns must be filed and tax paid within…
14 days after the effective date of transaction (usually completion).
SDLT returns can be amended by the taxpayer within…
HMRC within…
12 months of due filing date
nine months of actual filing date
