Stamp Taxes

The rate of stamp duty/stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5%.

On the transfer of property* the stamp duty land tax is: Residential Non-Residential
Value up to £125,000** 0% 0%
Over £125,000** - £250,000 2% 1%
Over £250,000 - £500,000 5% 3%
Over £500,000 - £925,000*** 5% 4%
Over £925,000*** - £1,500,000*** 10% 4%
Over £1,500,000*** 12% 4%

Residential SDLT calculated on the consideration falling within each band. Non-residential SDLT is charged at a single rate depending on the total purchase price.

* Land and buildings in England, Wales and Northern Ireland.
** Non-residential £150,000.
*** Residential Property Only.

New Leases

SDLT 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

SDLT on premiums is the same as for transfers of land (except that the zero rate does not apply where the annual rent of a non-residential property is £1,000 or more).

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