Personal property tax unlocked

Calculating SDLT rates on property purchases by individuals can be a complex business, explains Jo White

In my previous article, I considered the basic fundamentals of stamp duty land tax (SDLT). This article applies those principles to property purchases by individuals.  

The default position for residential purchases is shown in Table 1, as featured in FA 2003 s 55. However, under FA 2003 Sch 4ZA, a new surcharge rate has been introduced for transactions with an effective date of 1 April 2016, with special provisions in place for properties which exchanged around 25 November 2015. Under the surcharge rate, SDLT is only payable where consideration is £40,000 or more. If consideration is at least this amount but less than £125,000, then SDLT is payable on the whole amount at 3%.