SDLT

Question 1

What are the SDLT rates for Net Present Value on grant of lease? (3 brackets)

Answer 1

£0-£150,000 = Zero

Portion from £150,001 - £5 million = 1%

Portion above £5 million = 2%

Question 2

What are the SDLT rates on residential freehold from 1st April 2025? (5 brackets)

Answer 2

1) First time buyers of residential property for £500,000 or less will be able claim
relief from SDLT.

• They do not pay anything on purchases up to £300,000 and pay 5% on the portion from £300,001 to £500,000

2) For residential, non-first-time buyers:

• So much as does not exceed £125,000 - 0%
• So much as exceeds £125,000 but does not exceed £250,000 - 2%
• So much as exceeds £250,000 but does not exceed £925,000 - 5%
• So much as exceeds £925,000 but does not exceed £1,500,000 - 10%
• The remainder - 12%

3) If a sale involves valuable chattels, it may be possible to apportion some of the purchase price to the chattels to reduce payable SDLT

• Apportionment must be for a fair value or could be a fraud on HMRC
• For example, carpets and curtains should be listed as chattels to avoid paying stamp duty land tax on them and the purchase price reduced accordingly.

Question 3

What are the SDLT rates for non-residential freehold? (3 brackets)

Answer 3

For non-residential or mixed-use freehold:

• So much as does not exceed £150,000 - 0%
• So much as exceeds £150,000 but does not exceed £250,000 - 2%
• So much as exceeds £250,000 - 5%