Stamp Duty (Housing)

Stamp Duty (Stamp Duty Land Tax) is a tax on transactions, not documents. For transactions in land and buildings in the UK, completed on or after 1st December 2003 you are not required to send in documents for stamping.

You or your agent (usually your solicitor) should complete and send in a land transaction return to the Inland Revenue. You also face automatic penalties if there is a delay of more than 30 days in paying the Duty.

The land transaction return is required to notify the following:

• any transfer of a freehold or assignment or assignation of a lease for
• consideration, whether or not giving rise to a charge
• any transaction for which relief is being claimed
• the grant of a lease for a contractual term of 7 years or more or which
• gives rise to a charge
• any other transaction giving rise to a charge

It is worth bearing in mind that even if your purchase is below the Duty threshold a land transaction return will still need to be completed for these transactions. The 0% upper threshold is £175,000 for residential transactions and £150,000 for non residential deals.

In return you receive a stamp duty land tax certificate which you or your agents submit to land registries in order to register ownership of land or to record a deed, as appropriate.

The upper threshold rate was increased from £125,000 in September 2008. After September 3 2009, it will revert back to £125,000.

To see the full range of Housing stamp duty rates, click here . Stamp duty is not payable on remortgages.

Stamp Duty is also levied on share purchases

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Last Updated: September 2008 © Moneyextra.com

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