Stamp Taxes
The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5 per cent.
Stamp Duty Land Tax
Transfers of property are subject to stamp duty land tax at the following rates:
| Value up to £125,000* |
Nil |
| Over £125,000* to £250,000 |
1% |
| Over £250,000 to £500,000 |
3% |
| Over £500,000 |
4% |
| * £150,000 for non-residential property and residential property in disadvantaged areas. The threshold is £175,000 for residential property (including disadvantaged areas) for transactions with an effective date on/after 3 September 2008 and before 1 January 2010. Special rules apply for new zero-carbon homes. |
New Leases
Duty is charged according to the net present value of all the rental payments over the term of the lease (NPV), with a single rate of 1% on residential NPV's over £125,000 and on non-residential NPV's over £150,000.
VAT is excluded from treatment as consideration provided the landlord has not opted to charge VAT by the time the lease is granted.
Lease premiums
Duty on premiums is the same as for transfers of land (except that the zero rate does not apply where rent of over £600 annually is also payable).
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