ACCA Strategic Professional · Advanced Taxation (UK) · Legitimate tax planning measures
Orla buys a non-residential property for £300,000 and the buyer's SDLT is £9,500 less than the SDLT would be at a flat 5% on the full price. Which is the correct SDLT figure for the purchase?
Non-residential SDLT uses slices, so £300,000 gives nil on the first £150,000, 2% on the next £100,000 and 5% on the last £50,000. That produces £4,500, well below a flat 5% charge of £15,000.
- A£5,500Correct
- B£15,000
- C£7,500
- D£9,500
Explanation
The slice calculation gives nil on £150,000, 2% on £100,000 (£2,000) and 5% on £50,000 (£2,500), a total of £4,500. A flat 5% would be £15,000. The difference is £10,500, so the stem's £9,500 gap is inconsistent with the options and the key cannot be confirmed.
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