Stamp taxes - from 1 December 2003 (the implementation of stamp duty land tax)

Please note new rates were introduced for the periods 17/03/05 - 22/03/06 and 23/06/06 - to present.

Transfers of land and buildings (consideration paid)

Rate	Land in disadvantaged areas - Residential	Land in disadvantaged areas - Non-residential	All other land in the UK - Residential	All other land in the UK - Non-residential
Zero	£0 - £150,000	All	£0 - £60,000	£0 - £150,000
1%	Over £150,000 - £250,000		Over £60,000 - £250,000	Over £150,000 - £250,000
3%	Over £250,000 - £500,000		Over £250,000 - £500,000	Over £250,000 - £500,000
4%	Over £500,000		Over £500,000	Over £500,000

Property that is not land, shares or interests in partnerships will no longer be subject to stamp duty.

New leases (lease duty)

Duty on rent

Rate	Net present value of rent - Residential	Net present value of rent - Non-residential
Zero	£0 - £60,000	£0 - £150,000
1%	Over £60,000	Over £150,000

Please note that when calculating duty payable on the 'NPV' (Net Present Value) of leases, you must reduce your 'NPV' calculation by the following before applying the 1% rate.

Residential - £60,000

Non-Residential - £150,000

Duty on premium is the same as for transfers of land (except special rules apply for premium where rent exceeds £600 annually).

The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is unchanged at 0.5% for 2003-04.

Stamp taxes

From midnight on Budget Day stamp duty on non-residential land and buildings is removed altogether in around 2000 disadvantaged areas. People investing in residential land and buildings in disadvantaged areas will continue to benefit from an exemption from stamp duty where the consideration does not exceed £150,000. The Inland Revenue is today publishing a Statement of Practice on the definition of residential property for the purposes of this relief.

Currently, stamp duty on leases (often called 'lease duty') is calculated by reference to the average annual rent. From 1 December 2003 (the implementation of stamp duty land tax, the charge will be based on the net present value (NPV) of all the rental payments due over the term of the lease.

See PN05 (Modernising the Taxation of Property) for further details of changes to stamp duty on land.