Stamp Duty 2012/13 - Cutter & Co Chartered Accountants

Stamp Duty

Stamp duty, stamp duty reserve tax (SDRT) and stamp duty land tax (SDLT) are charged on transactions in shares and land.

The rates are:

Charged on total consideration	Rate
• shares (stamp duty/SDRT)
– value up to £1,000	nil
– value over £1,000	0.5%
• land (SDLT):
– up to threshold	0%
– threshold – £250,000	1%
– £250,001 – £500,000	3%
– over £500,000 (all properties)	4%
– £1,000,001 – £2,000,000 (residential)	5%
– over £2m (residential)	7%

The threshold depends on whether the property is residential or commercial and whether it is in a “disadvantaged area”:

	Residential	Commercial
General	£125,000	£150,000
Disadvantaged	£150,000	£150,000

The first sale of a new “zero carbon” property will be exempt from SDLT if the value is up to £500,000.

Stamp duty is charged on the total consideration, and is always rounded up to the nearest £5.

SDLT is charged on the whole consideration and is rounded down to the nearest £1.

SDLT is charged on the grant of a lease on any premium (using the above rates) and on the discounted net present value of the rental stream. This charge is at 1% of the excess of the NPV over the threshold.

Gifts, wills and other ‘gratuitous transfers’ are generally not liable to duty at all.

Stamp duty and its related taxes are normally due from the purchaser within 30 days of the chargeable transaction.