Personal taxation

In recent years, stamp duty on land and buildings has be...

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...ct the choice of investment wrappers in some situations.

Stamp duty land tax (SDLT) may have to be paid when an individual purchases property, regardless of whether it is an outright purchase or it involves a mortgage in England. In Scotland, the purchaser may have to pay land and buildings transaction tax (LBTT) and in Wales the tax is land transaction tax (LTT). SDLT is a tax on land transactions and is assessed and paid under self-assessment procedures. Where a solicitor is involved in the purchase they will normally take on the responsibility for dealing with the administration and payment of it.

An individual who acquires an interest in land must complete an SDLT return and pay the duty within 14 days of the ‘effective date’ of the transaction. The ‘effective date’ is normally taken as the completion date, but if the purchaser has paid for or taken possession of the property before completion, the date of payment or possession becomes the effective date.

For both non-residential and residential land transactions, tax is only paid at the rate of tax on the part of the purchase price within each tax band.

You can see the current rates for residential properties in the tax tables.

For residential leasehold property SDLT is charged at 1% on the present value of rent over the...

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...y in the UK or worldwide and intends to occupy the property being purchased as their main residence. If a property is being purchased by more than one purchaser, to qualify for the relief all purchasers must be classed as first-time buyers. Additionally, the purchase must not be linked to another land transaction unless the other transaction is the purchase of garden, ground or interests or rights in land that is there for the benefit of the dwelling, such as rights of way.

Land and buildings transaction tax

In Scotland, Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland, replaced SDLT on 1 April 2015.  It applies to transactions for residential or non-residential land in a similar way to SDLT, so tax is only paid at the rate of tax on the part of the purchase price that is within each band.

You can see the current rates for residential properties in the tax tables.

Land transaction tax

From 1 April 2018, SDLT was replaced by land transaction tax (LTT) in Wales, operated by the Welsh Revenue Authority, and it also operates in a similar way to SDLT and LBTT. The one difference is that there is no relief for first-time buyers. 

By when must any SDLT due be paid?

Answer : Purchase course for answer

Stamp duty is payable on stock transfer forms, documents that transfer the ownership of shares, stock and unit trusts.

Shares which are purchased through a stockbroker are normally transferred electronically, so there is no stock transfer form. On such paperless transactions an equivalent tax – stamp duty reserve tax (SDRT) - is charged on the agreement to transfer shares.

Stamp duty ...

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... April 2014, Stamp Duty and SDRT were abolished on transactions for companies listed on growth markets such as the AIM and ICAP Securities and Derivatives exchange (ISDX). Both taxes have also been abolished for UK domiciled exchange-traded funds, with the intention of encouraging funds to locate to the UK.

Explain how stamp duty or stamp duty reserve tax is paid.

Answer : Purchase course for answer

Chapter revision test. Your results and 1.2 hours of estimat...

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...he test then additional CPD time for the test will be added.