Stamp Duty

Question 1

• Deductions from Purchase Price

- Situation where ownership passes from one spouse to another. Divorce etc

Answer 1

• Can deduct value of chattels such as carpets & curtains ()not fixtures). HMRC will challenge high figures
• SDLT not payable on divorce/judicial separation

Question 2

Who Pays SDLT

• How
• When by
• When is surcharge applicable and how much
• Under what value is surcharge not applicable
• What hap[pens if main being sold and 2nd property is to replace

Answer 2

• Buyer pays SDLT
• Solicitor normally pays on buyers behalf
• within 14 days of effective ate of transaction (normally completion). If move in earlier take that date
• Surcharge on 2nd property of 3%
• Not applicable under £40k
  If main sold after 2nd property, then refund of surcharge if within 3 years

Question 3

First Time Buyer

• What’s main difference

Answer 3

• No SDLT for FTB on first £300k (provided less than £500k) - 5% above £300k

Question 4

Stamp Duty (Shares) and Stamp Duty Reserve Tax (SDRT)

• What are they - difference
• Exceptions to both

Answer 4

• Stamp Duty - payable on documents that transfer ownership of shares, stocks and UTs
  5% of PP rounded up to nearest £5
• SDLT As above but electronically
  5% rounded up or down tho nearest penny
• NA for shares on growth markets AIM and UK domiciled ETF
  Also transaction less than £1k

Question 5

Stamp duty in trusts

• Bare
• IIP/Life interest
• Discretionary

Answer 5

Bare- allowance for beneficiaries circumstances ie if FTB would qualify at normal rates

IIP - Treated as owning the property. If purchase is replacing main property, basic rates apply

Discretionary - 3% surcharge applies (higher)