ACCA ATX UK Syllabus A5. Stamp Taxes - Stamp taxes - exemptions and reliefs - Notes 1 / 1
Stamp taxes - exemptions and reliefs
The main exemptions relate to transfers where no consideration has been given.
Gifts at no consideration
Transfers of assets between 75% group companies
Divorce arrangements
Variation of wills
Changes in trustees
Takeovers, reconstructions or amalgamations
On the purchase of government stocks
On the purchase of company loan stock
On the purchase of unit trusts
Transactions between companies
Sales of assets between companies in the same group are exempt from SDLT and stamp duty if:
- One company is the beneficial owner of at least 75% of the issued share capital in one or more other companies.
Either of the companies can be non- UK resident i.e foreign parent or party to the transaction.
When the purchasing company leaves the group within 3 years of the property transfer, the SDLT exemption is withdrawn and SDLT becomes payable.
Illustration
Greg received 100,000 of £1 ordinary shares in an unquoted company Able Ltd as a gift from his father when they were worth £60,000.
How much stamp duty is payable?
Solution
This is a gift of unquoted shares, there is no stamp duty payable on gifts.
Illustration
White Ltd. and Black Ltd. are members of a 75% group.
Black Ltd transfers an office building to White Ltd on 1 December 2024 when the market value is £310,000
How much stamp duty is payable?
Solution
Transfer of building between companies in the same 75% group are exempt for stamp duty, therefore there is £Nil payable.