Stamp Duty Rules
2nd September 2008: the stamp
threshold was adjusted from £125,000 to £175,000 -
this is the level at which the tax becomes payable.
This was announced by the Chancellor Alistair
Darling in attempt to boost the housing market
following concerns of a looming recession and weeks
of doubt over whether or not stamp duty should be
reviewed. This additional relief was lost
after 31 December 2009 and replaced by a
limit of £250,000 for FIRST TIME BUYERS ONLY
for 1 year
Normal Stamp Duty Land Tax Rates (note
changes above)
Please note that the applicable rate of Stamp
Duty Land Tax must be applied to the whole of the
consideration paid to acquire the land / buildings
|
Zero |
<£150,001 |
<£150,001 |
<£125,001 |
<£150,001 |
|
1% |
>£150,000
<£250,001 |
>£150,000
<£250,001 |
>£125,000
<£250,001 |
>£150,000
<£250,000 |
|
3% |
>£250,000
<£500,001 |
>£250,000
<£500,001 |
>£250,000
<£500,000 |
>£250,000
<£500,000 |
|
4% |
>£500,000 |
>£500,000 |
>£500,000 |
>£500,000 |
| 5% |
>£1m |
>£1m |
>£1m |
>£1m |
|
N.B. Disadvantaged Area Relief for
non-residential land transactions is not
available for non-residential land
transactions with an effective date on or
after 17 March 2005
However the relief is preserved for:
- the completion of contracts entered
into and substantially performed on or
before 16 March 2005
- the completion or substantial
performance of other contracts entered
into on or before 16 March 2005,
provided that there is no variation or
assignment of the contract or sub-sale
of the property after 16 March 2005 and
that the transaction is not in
consequence of the exercise after 16
March 2005 of an option or right of
pre-emption.
|
| Zero |
£0 - £125,000 |
£0 - £150,000 |
| 1% |
Over £125,000 |
Over £150,000 |
|
Please note that when calculating duty
payable on the 'NPV' (Net Present Value) of
leases, you must reduce your 'NPV'
calculation by the following before
applying the 1% rate
- Residential -
£125,000
- Non-Residential -
£150,000
|
|
Properties in disadvantaged areas benefit
from stamp duty relief. A list of areas can
be found here
Disadvantaged Areas
Frequently asked stamp duty questions
Q. I own a house jointly with my partner
and we are splitting up, do I have to pay
stamp duty?
You may have to. If you are taking over
the house the Inland Revenue will take
account of any money you are paying your
partner for their share plus the amount of
the additional mortgage you are taking on.
For instance if you are paying £30,000 and
you have a joint mortgage for £100,000 the
Inland Revenue will work out duty on half
the mortgage (£50,000) plus £30,000, making
£80,000 so you will pay £800 stamp duty.
If you are getting divorced and the
property is being transferred because of
this, you will not have to pay any duty. You
will need to add a clause to the stamp duty
document stating that "I hereby certify that
this document it is exempt under category H
in the schedule to the Stamp Duty exempt
instruments regulations 1987".
Q. I am transferring half my house to
someone as a gift, do they have to pay duty?
If there is a mortgage on the property the
Inland Revenue will take duty on half the
mortgage debt. If this is less than £125,000
no duty will be payable.If there is no
mortgage debt the transaction will be exempt
under category L in the 1987 exempt
instrument regulation and there is nothing
to pay.
Exemptions in certain areas of the UK are
available
|
|
