Stamp Duty Flashcards
(16 cards)
Stamp duty is only payable on what 2 things?
- Shares
- Land & buildings
Does stamp duty apply to new shares?
No, stamp duty is only payable on existing shares.
What are the two ways that existing shares can be purchased?
- Through a stock transfer form.
- Electronically.
How is stamp duty calculated on existing shares purchased through a stock transfer form?
1) Consideration x 0.5
2) Round up to nearest £5
What must the consideration be equal to or less than for there to be no stamp duty?
£1,000 and less.
When does the stamp duty need to be paid & the stock transfer form presented to HRMC?
Within 30 days after the date of transaction.
What are penalties on stamp duty rounded down to?
Nearest £5.
When are penalties on stamp duty not charged on - what amount?
Less than £25.
For intragroup transactions, what is the minimum shareholding for SDLT to be exempt?
75%.
If a company is not part of a VAT group do you use the inclusive or exclusive VAT-price?
Inclusive VAT price.
When is the land transaction form submitted and when is SDLT paid?
Land transaction form and SDLT must be paid within 14 days of the transaction date.
Is there stamp duty on transfers forming part of a divorce settlement?
No.
What amount and less is there SDLT on?
£150,000, but a land transaction form must still be submitted to HRMC.
For buyers who already own a residential property and are purchasing another residential property - how much are the rates increased by?
3%
What do first-time buyers purchasing their first property as their main home or only home receive?
- If property is £625,000 or less then
- First £425,000 is charged at 0%
- £425,001 - £625,000 is charged at 5%
What is the property purchased by a first-time buyer is over £625,000?
The normal residential rates apply.
