The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is 0.5 per cent.
Transfers of property are subject to stamp duty land tax at the following rates:
| Cost |
Land in
disadvantaged
areas |
Other land in the UK |
| |
Home |
Non residential |
Home |
Non residential |
| Up to £125,000 |
0% |
0% |
0% |
0% |
| £125,001 to £150,000 |
0% |
0% |
1% |
0% |
| £150,001 to £250,000 |
1% |
1% |
1% |
1% |
| £250,001 to £500,000 |
3% |
3% |
3% |
3% |
| Over £500,000 |
4% |
4% |
4% |
4% |
Stamp duty continues to apply to transfers of partnership interests, but the amount payable will not exceed the amount that would have been payable on the value of any shares or securities included in the transfer.
Stamp duty land tax (SDLT) applies to the transfer of an interest in land into or out of a partnership or the transfer of an interest in a partnership (where the partnership property includes an interest in land). The charge is based on the market value of the land and the proportionate interest transferred and it applies only to partnerships whose sole or main activity is investing in or dealing in land. There is no longer an SDLT charge on transfers of partnership interests in other partnerships such as professional partnerships, farming partnerships or partnerships carrying on a trade which is not land-related.
Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV), with a single rate of 1% on residential NPV's over £125,000 and on non-residential NPV's over £150,000.
VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted.
Duty on premiums is the same as for transfers of land (except that the zero rate does not apply where rent of over £600 annually is also payable).
Qualification for this relief will require zero carbon emissions from all energy use in the home over a year. To achieve this, the fabric of the home will be required to reach a very high energy efficient standard and be able to provide onsite renewable heat and power. The relief is available from 1 October 2007 for the five years to 30 September 2012 and applies to new homes which are liable to SDLT on the first sale. SDLT relief will be available where the purchase price is up to £500,000. Where the price exceeds £500,000 the SDLT liability will be reduced by £15,000. In this circumstance the balance of SDLT will remain due.
Please contact us for further information relating to the qualifying criteria, the fabric of the building, heat and power generation and additional power for appliances.
That the Government expect to raise £14.3 billion of its £553 tax generating programme from stamp taxes. Significantly this is an increase of more than 30% when compared with 2005/06.