01 April 2011
5% on residential property over £1m
HMRC have published guidance about the new stamp duty land tax 5% rate. It was introduced by FA 2010 for residential property transactions where the chargeable consideration exceeds £1 million and where the effective date is on or after 6 April 2011.
The existing 4% rate continues to apply to residential property transactions where the consideration is between £500,000 and £1 million.
The new rate also applies to linked transactions which consist wholly of residential property where the aggregate chargeable consideration exceeds £1 million.
Non-residential and mixed use transactions are not affected.
