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Stamp duty & stamp duty land tax

Stamp Duty

Stamp duty is payable on the transfer of shares in a company if the transaction is over £1,000.

Stamp duty reserve tax is payable if shares are purchased through the CREST system (e.g. through a stockbroker).

The rate in either case is 0.5% of the consideration given.

Stamp Duty Land Tax

SDLT is payable on land and property transactions in England, Wales and Northern Ireland. From 1 April 2015 property transactions in Scotland are subject to Land and Buildings Transaction Tax.

Residential property

The rates apply to the portion of the total value which falls within each band.

Consideration (£) Rate (%)
0 – 125,000 0
125,001 – 250,000 2
250,001 – 925,000 5
925,001 – 1,500,000 10
1,500,001 and above 12

From April 2016 these rates may be increased by 3% where further residential properties, costing over £40,000, are acquired which are not the individual’s principal private residence.

Non-residential property

From 17 March 2016

Payable on consideration which falls in each band:

Consideration (£) Rate (%)
0 – 150,000 0
150,001 – 250,000 2
Over 250,000 5

Before 17 March 2016

If the non-residential property value is above a threshold, SDLT is charged at that rate on the whole amount of the consideration.

Consideration (£) Rate (%)
0 – 150,000 0
150,001 – 250,000 1
250,000 – 500,000 3
Over 500,000 4