GUIDE TO STAMP DUTY

Changes to current stamp duty regulations came into force on 1st December 2003 and are now as follows:-

• Properties which COMPLETE will now have to pay STAMP DUTY LAND TAX (SDLT) instead of the old stamp duty.
• Unlike the old stamp duty, SDLT is a tax on the transaction and not a charge on the ‘legal effect of documents’.
• Under SDLT, the purchaser/lessee is the legally liable person responsible for payment of SDLT.
• The Inland Revenue will have up to 9 months to review a transaction and if thought to contravene the regulations, will be able to claim the full amount of tax.
• The bands of SDLT remain the same as with the old stamp duty, ie
  Up to £125,000 - nil
  £125,001 - £250,000 - 1%
  £250,001 - £500,000 - 3%
  More than £500,000 - 4%
• Please be aware that when we receive offers which appear to be attempting to avoid, evade or minimise payment of SDLT, we must advise the purchaser of the possible action of the Inland Revenue.

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