Stamp duty is payable at 0.5% on transfers of shares and securities.

No charge unless the duty (including SDLT) exceeds £5

Stamp Duty Land Tax (SDLT)

Residential Land

There will be relief from SDLT on purchases of residential properties that cost up to £250,000, where the transaction is completed on or after 25 March 2010 and before 25 March 2012. This relief can only be claimed by first time buyers who intend to occupy the property as their main home. To help fund this temporary tax relief, an additional rate of SDLT will be introduced at 5% on residential properties costing £1 million or more, where the transaction is completed after 5 April 2011.

On the transfer of residential land, SDLT is payable at the following rates:

Value up to £125,000*
0%
Value £125,001 - £250,000
1%
Value £250,001 - £500,000
3%
Value over £500,000
4%

* £150,000 for property in disadvantaged areas. £250,000 for first time buyers where completion is on or after 25/03/2010 and before 24/03/2012

Non Residential Land

On the transfer of non-residential land, SDLT is payable at the following rates:

Value up to £150,000
0%
Value £150,001 - £250,000
1%
Value £250,001 - £500,000
3%
Value over £500,000
4%


Disadvantaged areas relief

Disadvantaged Areas Relief currently only applies to the residential element of ‘mixed use’ (business and residential) property transactions - for example a shop with a flat above bought together. Use is apportioned on a ‘fair and reasonable’ basis and if the amount apportioned to the residential element does not exceed £150,000, a separate £150,000 threshold applies to the non-residential element.


Zero-carbon homes

From 1 October 2007 - 30 September 2012
New homes - purchase price up to £500,000 - exempt from SDLT
Purchase price more than £500,000 - SDLT liability reduced by £15,000


New leases (lease duty)

The SDLT charge on leases is calculated as 1% of the “net present value” (NPV) of the rent due in respect of the lease, less an exemption. The NPV of a lease is calculated by taking the total rent payable over the life of the lease and discounting it by 3.5% a year.

Non-residential properties up to £150,000
0%
over £150,000
1%
Residential properties up to £125,000 *
0%
over £125,000 *
1%

* Note that between 3 September 2008 and 31 December 2009 the starting threshold for SDLT for most transactions was £175,000. The threshold was reduced back to £125,000 from 1 January 2010.