SDLTM09510 - Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: transactions affected FA03/SCH4A/PARAS3(3)/3(4)
»Ê¹ÚÌåÓýapp higher rate charge is payable when a ‘higher threshold interestâ€� (see SDLTM09515) acquired
- by a body corporate (most commonly a company limited by share capital)
- by a partnership of which one or more members is a body corporate, or
- where the acquisition is made for the purposes of a collective investment scheme.
‘Collective investment scheme� has the same meaning as in Part 17 of Financial Services and Markets Act 2000 (see in particular section 235).
A partnership that includes among its members a collective investment scheme will also be within the higher rate charge as the acquisition, made through the partnership, will still be for the purposes of the collective investment scheme.
»Ê¹ÚÌåÓýapp higher rate charge also applies where a higher threshold interest is acquired by two or more purchasers acting jointly, and at least one of those purchasers is one of the entities above (see FA03/SCH4A/PARA3(5)).
»Ê¹ÚÌåÓýappre are exclusions from the higher rate charge for a company acting in the capacity of trustee of a settlement and for certain business and trading activities, provided that certain conditions are met.
Where the transaction is a grant of a lease, the 17 per cent higher rate charge applies where the premium exceeds the higher rate threshold. »Ê¹ÚÌåÓýapp normal rules in FA03/S56/SCH5 apply to the rent. Only the premium is taken into account for the purposes of the higher rate charge.