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HMRC internal manual

Stamp Duty Land Tax Manual

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HM Revenue & Customs
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Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: introduction

A higher rate of SDLT applies in certain circumstances to the purchase of a ‘higher threshold interest’ in residential property where the consideration exceeds the higher rate threshold.

This provision applies to land transactions where the effective date is on or after 21 March 2012, subject to transitional provisions for pre-existing contracts and for certain partnership transactions -see SDLTM09720.

The higher rate charge is 15 per cent of the chargeable consideration given for the purchase of the higher threshold interest.

The higher rate threshold is as follows.

Effective date of transaction: On or after 21 March 2012 and before 20 March 2014 On or after 20 March 2014
     
Higher rate threshold: £2 million £500,000

Exceptionally, in a case where the SDLT relief for exercise of collective rights by tenants of flats (FA03/S74) is claimed, the higher rate threshold is reduced to £500,000 where the effective date of the transaction is on or after 1 July 2014.

The £2 million threshold is preserved under transitional provisions for pre-existing contracts and for certain partnership transactions - see SDLTM09725.