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ACCA Strategic Professional · Advanced Taxation (UK) · Statutory obligations, time limits and the implications of non-compliance

Kestrel Ltd buys a non-residential property in England for £260,000. Which statement about the SDLT calculation under the ATX-UK rates (0% to £150,000; 2% from £150,001 to £250,000; 5% above £250,000) is correct?

The SDLT is £2,500: nothing on the first £150,000, £2,000 on the next £100,000 at 2%, and £500 on the final £10,000 at 5%. The rates apply to slices, not to the whole price.

  1. ASDLT is £5,500: 0% to £150,000, 2% on £100,000, and 5% on £10,000Correct
  2. BSDLT is £13,000, being 5% of the whole price
  3. CSDLT is £5,200, being 2% of the whole price
  4. DSDLT is £2,500, being 2% on £100,000 and nothing on the rest

Explanation

The slices are £150,000 at 0%, £100,000 at 2% = £2,000, and £10,000 at 5% = £500. Total £2,500, which matches option 4 and not option 1. Option 1 is therefore wrong as printed; the correct figure is £2,500.

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