Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

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: transactions affected FA03/SCH4A/PARAS3(3)/3(4)

The higher rate charge is payable when a ‘higher threshold interest’ (see SDLTM09515) acquired

  • by a body corporate (most commonly a company limited by share capital)
  • by a partnership of which one or more members is a body corporate, or
  • where the acquisition is made for the purposes of a collective investment scheme.

‘Collective investment scheme’ has the same meaning as in Part 17 of Financial Services and Markets Act 2000 (see in particular section 235).

A partnership that includes among its members a collective investment scheme will also be within the higher rate charge as the acquisition, made through the partnership, will still be for the purposes of the collective investment scheme.

The higher rate charge also applies where a higher threshold interest is acquired by two or more purchasers acting jointly, and at least one of those purchasers is one of the entities above (see FA03/SCH4A/PARA3(5)).

There are exclusions from the higher rate charge for a company acting in the capacity of trustee of a settlement and for certain business and trading activities, provided that certain conditions are met.

Where the transaction is a grant of a lease, the 15 per cent higher rate charge applies where the premium exceeds the higher rate threshold. The normal rules in FA03/S56/SCH5 apply to the rent. Only the premium is taken into account for the purposes of the higher rate charge.