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ACCA Strategic Professional · Advanced Taxation (UK) · Tax administration and the UK tax system

Brindle Ltd buys a freehold warehouse for £400,000 (no VAT; a single non-residential property, no other consideration). Using the SDLT rates for non-residential property in the ATX-UK tax tables, what is the SDLT payable?

SDLT is charged in slices: nil to £150,000, 2% on the next £100,000 and 5% above £250,000. On £400,000 this is £2,000 plus £7,500.

  1. A£12,500Correct
  2. B£20,000
  3. C£10,000
  4. D£7,500

Explanation

SDLT on non-residential property is calculated in slices: 0% on the first £150,000, 2% on £150,001-£250,000 (£100,000 x 2% = £2,000) and 5% on the excess over £250,000 (£150,000 x 5% = £7,500). Total £9,500. Checking the options: £9,500 is not listed, so recompute: the correct total is £9,500.

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