The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5%.
Stamp Duty Land Tax (SDLT)
Transfers of property are subject to SDLT at the following rates:
For non-residential property, if the value is above a threshold, SDLT is charged at that rate on the whole amount of the consideration.
|0 - 150,000
|150,001 - 250,000
|250,001 - 500,000
A 15% rate will apply to properties over £500,000 purchased by certain non–natural persons.
Under the old rules, SDLT was charged at a single percentage of the price paid for the property, depending on the rate band within which the purchase price fell. From 4 December 2014, SDLT will be charged at each rate on the portion of the purchase price which falls within each rate band.
The new rates and thresholds are:
|0 - 125,000
|125,001 - 250,000
|250,001 - 925,000
|925,001 - 1,500,000
|1,500,001 and over
This new measure will have effect on and after 4 December 2014. The measure will apply in Scotland until 1 April 2015, when SDLT is devolved.
Where contracts have been exchanged but transactions have not completed on or before 3 December 2014, purchasers will have a choice of whether the old or new rules apply. HM Revenue & Customs have produced an online calculator to help in calculating the duty payable under both sets of rules: http://www.hmrc.gov.uk/SDLT/calculate/calculators.htm
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.
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).