Stamp duty land tax, or SLDT, replaced stamp duty in the UK and took effect on Dec. 1, 2003. Land and building transactions in the UK require payment of SLDT.
When SLDT was applied in 2003, it resulted in higher charges on leases of rents, according to the Financial Times. SLDT on a residential purchase worth more than £2m increased from 5 per cent to 7 per cent. Effective March 14, 2014, a residential property acquired by a non-natural person, such as a company, has pertinent SLDT charge of 20 percent from the former stamp duty of 15 percent on the consideration that the property amounts to at least £500,000.
Other than SLDT, such property is also rated with the Annual Tax on enveloped dwellings, according to Out-Law. UK shares transfers, irrespective of value, are levied at 0.5 per cent of the price. Electronic share dealings taxed at the same 0.5 percent of the property amount is instead charged with a Stamp Duty Reserve Tax and not stamp duty. However, the Financial Times reports that a provision taking effect on April 28, 2014 abolished both stamp duty and Stamp Duty Reserve tax on quoted shares transacted in legitimate growth markets, including the ISDX Growth Market and the Alternative Investment Market. Over 1,000 quoted businesses in the UK stand to benefit from this alteration.