Are there areas that are exempt from the stamp duty?


Quick Answer

As of June 6, 2013, reductions in the Stamp Duty Land Tax for disadvantaged areas were abolished. Claims for relief for purchases made before this date needed to be done before May 5, 2014. Exemptions and relief from the Stamp Duty with regards to paper transfers and shares apply to certain groups, charities and transactions. Areas are no longer exempt from paying the Stamp Duty as of July 2014.

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Full Answer

The Stamp Duty is paid on all shares that use a paper method. Exempt transactions on shares include those received as a gift, transferred due to a new marriage, given from one trustee to another, liquidated due to business closure, used as security for a loan or transferred to beneficiaries of a trust. Specific exemptions within Stamp Duty legislation for individuals are made for wills, divorces and loan capital.

Share transfers between companies and organizations also have relief from the Stamp Duty. Transfers of land or shares between companies in the same group, acquisitions of companies, sales to intermediaries and transfers to charities all receive reductions in the Stamp Duty if certain conditions are met.

To receive relief or exemptions from the United Kingdom's Stamp Duty, correspondence must be made to the Birmingham Stamp Office of HM Revenue and Customs department. The Stamp Duty is levied on shares and land transfers before December 2003.

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