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9 Cards in this Set
- Front
- Back
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Describe stamp duty. |
- 0.5% on purchase of shares by 'stock transfer form' - round up to nearest £5 - not charged is consideration <£1,000 or new shares (i.e. on incorporation) - not charged on intra (75%) group purchases NB - also applies to share buy-backs unless: - redeemable shares - part of court order, or - shares immediately cancelled. |
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Describe stamp duty reserve tax (SDRT). |
- same as stamp duty but on paperless transfers of shares (CREST system) - 0.5% - no rounding. |
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Describe stamp duty land tax (SDLT). |
chargeable on land and buildings (including payment of rent and lease premiums) - rates vary according to value and residential vs non-residential use - NB - 15% rate if company buys a single residential dwelling for > £500,000 (unless company is a property developer) - this is anti avoidance to prevent enveloped dwellings |
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Give 4 exemptions from SDLT. |
- gifts - transfers on divorce - variation of a will - between 75% group members unless leave the group in < 3 years. |
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What stamp duty arises on incorporation? |
- SDLT charged to company on transfer of any land or buildings on incorporation - % based on total value of all buildings transferred added together - no stamp duty on issue of shares as it is a new issue. |
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What stamp duty arises on liquidation? |
- No SDLT payable by shareholders who receive land / buildings unless consideration is paid - no stamp duty on shares as they will normally be cancelled |
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What are enveloped dwellings and what taxed are charged on them? |
ED = high value property transferred into company to avoid stamp duty on sale. 2 charges: - Annual tax on enveloped dwellings (ATED) - CGT charge on high value properties. |
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Explain the annual tax on enveloped dwellings (ATED). |
- if property worth > £2m (revaluations made every 5 years) - annual charge based on value (in notes) |
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Explain the CGT charge on high value properties. |
- applies when owner of property subject to ATED disposes of property on / after 6 April 2013 and proceeds > £2m. - CGT charge at 28% (no indexation or AEA allowed) on gain since 6 April 2013 / acquisition if later. |
