Compact Services

  2004 Budget - Stamp Duty

Stamp duty, stamp duty reserve tax and stamp duty land tax are charged on transactions in shares and land. The rates are:

Charged on consideration Rate
• shares 0.5%
• land (sdlt):  
  - consideration up to threshold 0%
  - consideration threshold - £250,000 1%
  - consideration £250,001 - £500,000 3%
  - consideration over £500,000 4%

The threshold depends on whether the property is residential or commercial and whether it is in a " disadvantaged area":

Residential Commercial
General £60,000 £150,000
Disadvantaged £150,000 exempt

Stamp duty is charged on the total consideration, and is always rounded up to the nearest £5.

SDLT is charged on the whole consideration and is rounded down to the nearest £1.

SDLT is charged on the grant of a lease on any premium (using the above rates) and on the discounted net present value of the rental stream. This charge is at 1% of the excess of the NPV over the threshold.

Fixed duties on instruments have been abolished. Gifts, wills and other 'gratuitous transfers' are generally not liable to duty at all. Stamp duty and its related taxes are normally due from the purchaser within 30 days of the chargeable transaction.