Changes to Stamp Duty

Stamp Duty Land Tax

Under the new Stamp Duty Land Tax (SDLT) all property transactions, such as leases and acquisitions, over £150,00 will have to be notified to the Inland Revenue using the land transaction form. The SDLT is compulsory and is payable on the transfer itself. The nil rate threshold has increased from £60,000 to £150,000. It is envisaged that the SDLT will mainly affect leases. So for example, for the acquisition of a lease over £150,000, SDLT will be payable on the rent over the contractual term of the lease. However, certain transactions are exempt:


- Acquisitions by a charity
- Transfers between group companies
- Transfers from company reconstructions
- Certain purchases (including leases) by registered social landlord's
- Acquisitions of land located within disadvantaged areas; and
- Crown exemptions.
New tax relief and special rates have also been introduced by the SDLT.

 
Email: Dr Rosanna Cooper

© RT COOPERS, 2004. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.

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