ATXP6 UK
Syllabus A5. Stamp Taxes A5b. Liabilities arising on transfers

A5bii. Land

Syllabus A5bii)

Advise on the stamp taxes payable on transfers of land

Stamp Duty Land Tax

SDLT is payable on:

Transactions involving land, unless the transaction is specifically exempt.

  1. This applies to transactions in UK property and lease premiums.

  2. The rate of SDLT varies depending on the purchase price and whether the land and buildings is residential or commercial.

  3. 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%

Illustration

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?

  • Solution

    Factory

    £150,000 x 0% =0

    £100,000 x 2% = £2,000

    Total £250,000

    £150,000 x 5% = £7,500
 
    Total £400,000 - SDLT £9,500