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

Which of the following purchases would be subject to SDRT at 0.5% on the agreement to transfer?

The purchase of shares in a UK-incorporated company is subject to SDRT at 0.5%, here £3,000. Land falls under stamp duty land tax, while goodwill and trademarks are not chargeable securities, so SDRT does not apply to them.

  1. AAcquisition of a freehold office building for £600,000
  2. BAcquisition of an interest in a UK partnership's goodwill for £600,000
  3. CAcquisition of shares in a UK-incorporated company for £600,000Correct
  4. DAcquisition of a trademark for £600,000

Explanation

SDRT applies to agreements to transfer chargeable securities such as shares in UK-incorporated companies. A building is within stamp duty land tax, and goodwill and trademarks are outside stamp duty and SDRT. Only the share purchase is charged, at 0.5% (£3,000).

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