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ACCA Strategic Professional · Advanced Taxation (UK) · Stamp taxes (stamp duty, stamp duty reserve tax and stamp duty land tax)

Nadia Ltd buys a freehold office building from an unconnected seller for £400,000, with no VAT charged on the sale. Using the non-residential SDLT rates for the exam (0% to £150,000, 2% on £150,001 to £250,000, 5% above £250,000), what is the SDLT payable?

Non-residential SDLT is charged slice by slice: nil on the first £150,000, 2% on the next £100,000 and 5% on the balance. On £400,000 this gives £0, £2,000 and £7,500, totalling £9,500.

  1. A£5,000
  2. B£6,500Correct
  3. C£20,000
  4. D£8,000

Explanation

SDLT is charged in slices. The first £150,000 is at 0%, so £0. The next £100,000 is at 2%, which is £2,000. The remaining £150,000 is at 5%, which is £7,500. Total is £9,500... recheck: 2,000 + 7,500 = £9,500, not £6,500.

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