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, on the purchase price, lease premium (but also see note below on lease premiums) or transfer value, at the following rates:
| Commercial property | % applied to the full amount |
| Value up to £150,000 or less | Nil |
| Value from £150,001 up to £250,000 | 1% |
| Value from £250,001 up to £500,000 | 3% |
| Value from £500,001 | 4% |
| Residential property | % |
| Value up to £125,000* or less | Nil |
| Value from £125,001* up to £250,000 | 1% |
| Value from £250,001 up to £500,000 | 3% |
| Value from £500,001 | 4% |
| * £150,000 for property in disadvantaged areas. £250,000 for first time buyers where completion is from 25/03/10 to 24/03/12. 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, applied to the value that exceeds £125,000, and on non-residential NPV's over £150,000, similarly applied to the value that exceeds £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 £1,000 annually is also payable.
