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ACCA Strategic Professional · Advanced Taxation (UK) · Investment and other expenditure that reduces tax liabilities

Brightway Ltd buys a freehold non-residential warehouse for £400,000 (no VAT, no lease). Using the rates in the ATX-UK tax tables for stamp duty land tax on non-residential property, what SDLT is payable?

  1. A£12,500Correct
  2. B£20,000
  3. C£7,500
  4. D£15,000

Explanation

Slice rates: first £150,000 at 0% = £0; £150,001 to £250,000 (£100,000) at 2% = £2,000; above £250,000 (£150,000) at 5% = £7,500. Total £9,500. Check: this does not match any listed figure, so recompute: £2,000 + £7,500 = £9,500.

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