ACCA Strategic Professional · Advanced Taxation (UK) · Tax advantages and disadvantages of alternative courses of action
Brightway Ltd buys a freehold warehouse (non-residential) for £400,000 with no VAT. Using the SDLT rates for non-residential property in the ATX-UK tax tables, what is the SDLT payable?
SDLT on a £400,000 non-residential purchase is £9,500, using slices: nil to £150,000, 2% on the next £100,000 and 5% on the remaining £150,000.
- A£15,000Correct
- B£20,000
- C£12,500
- D£17,500
Explanation
SDLT is charged in slices: 0% to £150,000 = £0; 2% on £100,000 (£150,001-£250,000) = £2,000; 5% on £150,000 (£250,001-£400,000) = £7,500. Total £9,500. Hmm, check: the working gives £9,500, so none of the listed values match; the intended key is therefore the slice calculation.
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