Budget 2006: Stamp duty simplified. By Nichola Ross Martin | AccountingWEB

<b>Budget 2006:</b> Stamp duty simplified. By Nichola Ross Martin

A number of welcome measures were announced which will help to simplify the system:

Residential property
A small increase in the threshold for Residential transactions is announced. From 23rd March 2006 the threshold for stamp duty land tax on residential transactions from £120,000 to £125,000.

Extension of Alternative Finance Reliefs
Relief against an extra charge for those using alternative financing arrangements for the purchase or lease of land and buildings. These are structured to preclude the payment of interest.


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SDLT on Gift of Property

tomtrainer | | Permalink

If a house is gifted and becomes PPR of beneficiary, and the donor dies within 7 years of making gift, IHT is payable and this presumably satisfies the condition "a gift of property where the donee or beneficiary agrees or is required to pay capital gains tax or inheritance tax arising on the gift".

However, if the donor dies more than 7 years after making the gift, no IHT is payable, so does the exemption from SDLT still apply?

stamp duty land tax

Anonymous | | Permalink

Would you clarify something for me? Assuming ESC C 16 applies and clearance has been obtained from HMRC, if part of the final distribution includes a commercial property owned by the company and not sold as part of the trade disposal, which will be retained by the shareholder and let to the new business owners, will this transfer be exempt from SDLT or if not will the net book value be used to calculate the tax due or must the market value be used?

Thanks a lot. No time to search for answer in mountain of legislation.