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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
Land Transactions with an effective
date on or after 23rd March 2006
Transfers of land and buildings
(consideration paid)
|
Rate |
Land in disadvantaged areas -
Residential |
Land in disadvantaged areas -
Non-residential |
All other land in the UK - Residential |
All other land in the UK -
Non-residential |
|
Zero |
£0 -
£150,000 |
£0 -
£150,000 |
£0 -
£125,000 |
£0 - £150,000 |
|
1% |
Over
£150,000
- £250,000 |
Over
£150,000
- £250,000 |
Over
£125,000
- £250,000 |
Over £150,000
- £250,000 |
|
3% |
Over
£250,000
- £500,000 |
Over
£250,000
- £500,000 |
Over
£250,000
- £500,000 |
Over £250,000
- £500,000 |
|
4% |
Over £500,000 |
Over £500,000 |
Over £500,000 |
Over £500,000 |
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.
New leases (lease duty) : Duty on Rent
|
Rate |
Net present value of rent -
Residential |
Net present value of rent -
Non-residential |
|
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
Disadvantaged Areas
Frequently asked questions
Q. I own a house jointly with my partner
and we are splitting up, do I have to pay stamp duty?
A. 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?
A. 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. Click the link
below to determine where these areas are.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT