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:
|Value up to £125,000 (£150,000 for non-residential property)
|Over £125,000 (£150,000) to £250,000
|Over £250,000 to £500,000
|Over £500,000 to £1,000,000*
|Over £1,000,000* to £2,000,000*
* Residential property only. A 15% rate may apply to properties over £2m purchased by certain 'non-natural persons'.
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).