Stamp Duty Land Tax
SDLT is payable on:
Transactions involving land, unless the transaction is specifically exempt.
This applies to transactions in UK property and lease premiums.
The rate of SDLT varies depending on the purchase price and whether the land and buildings is residential or commercial.
Once the purchase price exceeds the particular threshold the whole amount is charged at the corresponding rate.
Note - the charge to stamp duty land tax on residential property in not on the ATX - UK syllabus.
Non-residential property rates
Up to £150,000 – 0%
£150,001 - £250,000 - 2%
£250,001 and over - 5%
Ray inherited £400,000 on the death of his aunt Daisie, and he wants to buy a factory for his new business at a cost of £400,000.
What is the amount of SDLT payable by Ray?
£150,000 x 0% =0
£100,000 x 2% = £2,000
£150,000 x 5% = £7,500
Total £400,000 - SDLT £9,500