Guidance on 5% Stamp Duty Land Tax Rate
HMRC published guidance for stamp duty land tax (SDLT) transactions where the chargeable consideration on residential properties exceeds £1 million.
Finance Act 2010 introduced a new 5% per cent rate of SDLT for residential property transactions where the chargeable consideration exceeds £1 million. The new rate applies to transactions where the effective date is on or after 6 April 2011.
The existing 4% rate will still apply to residential property transactions where the consideration is more than £500,000 and up to £1 million. Transitional arrangements apply to transactions where a contract was entered into before 25 March 2010 (the Budget day on which the 5% rate was announced) but is not completed before 6 April 2011. In most such cases the new rate will not apply. Non-residential and mixed use transactions are not affected.
For more information go to http://www.hmrc.gov.uk/sdlt/sdlt-restrans-1mill.htm