Stamp duty is paid on the sale or transfer of equities at a rate of 0.5% for the tax year 2008/09. This is the same level which existed in the 2007/08 financial year.
Stamp Duty Land Tax
In the event of a property transfer, stamp duty is payable at the rates listed below.
| Transfer value does not exceed £125,000* | Nil |
| Between £125,000* and £250,000 | 1% |
| Between £250,000 and £500,000 | 3% |
| Above £500,000 | 4% |
| * The threshold is increased to £150,000 for commercial property and residential property in selected special development zones. Zero-carbon homes have distinct regulations for stamp duty. | |
Partnerships
When an interest in a partnership is sold, stamp duty is payable up to an amount which would have been due if equities were included in the sale.
If as part of a transfer of an interest in a partnership, a portion of the package includes property, stamp duty will be applicable to that transaction. This provision is relevant only to partnership entities not conducting a trade which involved the development, sale and purchase of land.
New Leases
Where a new lease is granted, the net present value of the lease premiums over the duration of the rental term is used to calculate the stamp duty which is payable. The rates for 2008/09 are 1% on non commercial agreements over £125,000 and on business related property in excess of £150,000.
Any VAT which is paid during the term of the lease is subtracted before identifying whether the relevant threshold is breached provided the lessor has not chosen to apply tax at the inception of the agreement.
Lease premiums
The treatment of lease premiums is identical to the provisions which related to land and property transaction. The main different is that where rent of £600 or more is charged, the nil rate is not applicable.
