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Stamp taxes and duties
Transfers of land and
buildings (consideration paid)
The stamp duty land tax (SDLT) holiday, which exempts residential properties up to the value of £175,000 from SDLT, is extended until 31 December 2009.
From 1 January 2010, the zero and 1% rates apply as per the table below:
Rate |
Residential in disadvantaged areas |
Residential outside disadvantaged areas |
Non-residential |
|
Total value of consideration |
|||
|
Zero |
£0 - £150,000 |
£0 - £125,000 |
£0 - £150,000 |
|
1% |
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 |
|
4% |
Over £500,000 |
Over £500,000 |
Over £500,000 |
(On the 2 September 2008 a SDLT holiday was announced, increasing the starting rate of SDLT for residential property to £175,000. This was due to expire on 3 September 2009. Budget 2009 announces that this will be extended until 31 December 2009.)
New leases (lease duty)
Duty on the premium is the same as for transfers of land (except that special rules apply for non-residential land and property premium where rent exceeds £1,000 annually. The rules no longer apply to residential property from 12 March 2008). Duty on the rent is charged on any part of the net present value (NPV) which exceeds the threshold.
|
Rate |
Net Present Value of rent |
||
|
|
Residential in disadvantaged areas |
Residential outside disadvantaged areas |
Non-residential |
|
|
Slice of NPV |
||
|
Zero |
£0 - £150,000 |
£0 - £125,000 |
£0 - £150,000 |
|
1% |
Over £150,000 |
Over £125,000 |
Over £150,000 |
For new leases, the rates applicable in respect of the premium are the same as for transfers of land and buildings (except that special rules apply where the rent exceeds £1,000 annually for non-residential land and property. The £600 threshold has been abolished for residential land and property with effect from 12 March 2008).
For the rental element of new leases, the charge is based on the net present value (NPV), which is the total of the discounted annual rental payments. The NPV is charged at 1 per cent on the excess over £125,000 for residential land and property and 1 per cent on the excess over £150,000 for non-residential land and property.
Transfers of shares and stocks
The rate of stamp duty/stamp duty reserve tax on the transfer of shares and securities is unchanged at 0.5 per cent for 2009-10.