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Tax Facts

Budget 2008

Introduction

Personal Taxation

Employee Taxation

Investment Reliefs

Capital Gains Tax

Trusts

National Insurance Contributions

Tax Credits

Inheritance Tax

Business Tax

Corporation Tax

Value Added Tax

Stamp Duty

Insurance Premium Tax

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Stamp Duty

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

Charged on total consideration		Rate
*	shares (stamp duty/SDRT)
	- value up to £1,000	nil
	- value over £1,000	0.5%
*	land (SDLT):
	- up to threshold	0%
	- threshold - £250,000	1%
	- £250,001 - £500,000	3%
	- 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

£125,000

£150,000

Disadvantaged

£150,000

The first sale of a new "zero carbon" house will be exempt from SDLT if the value is up to £500,000.

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.

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.

email: info@davidcutter.co.uk
Tel: 0121-550-8525 Fax: 0121-585-7341

2 Lyttleton Court | Birmingham Street | Halesowen | West Midlands | B63 3HN

DIRECTORS:	PAUL CUTTER BA(Hons), ACA
	KATE JONES BA(Hons), FCCA, ACA

DAVID CUTTER & CO IS A TRADING NAME OF CUTTER & CO LIMITED

COMPANY NUMBER: 07252989

A MEMBER OF THE INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND AND WALES