Stamp taxes

The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is 0.5 per cent. The liability is subject to rounding up to the nearest £5. Please refer to our stamp duty calculator.

Stamp duty land tax

Transfers of property are subject to stamp duty land tax at the following rates.

Non-natural persons - 15% rate

A 15% stamp duty land tax rate applies where a non-natural person owns a residential property. This rate applies where the property consideration exceeds £2 million. Where the interest/property is purchased in sole or joint names then the 15% SDLT charge will apply to the following:

• All such purchases by bodies corporate (largely companies)
  All collective investment schemes, and
  All partnerships where there are one or more members who are one of the above

Partnerships

Stamp duty applies 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 reported 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.

New leases

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.

Lease premiums

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).

Zero carbon homes

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 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.

Transfers that attract stamp duty not exceeding £5 (fixed or ad valorem) will be exempt and not have to be presented for stamping. The principal reason for this is to reduce administration for smaller transactions.

Did you know?

That the Treasury is expecting to receive £6.4 billion (2011/12 £6.1 billion) in SDLT.