ACCA Strategic Professional · Advanced Taxation (UK) · Taxes applicable to a given situation or course of action and their impact
Zara plans to buy a freehold non-residential warehouse for £400,000 (no VAT). Under the rates in the ATX-UK tax tables, what is the stamp duty land tax payable by Zara?
Non-residential SDLT is charged in slices: nil on the first £150,000, 2% on the next £100,000 and 5% above £250,000. On £400,000 that is £2,000 plus £7,500, giving £9,500.
- A£12,500Correct
- B£20,000
- C£22,000
- D£10,000
Explanation
The first £150,000 is taxed at 0%. The next £100,000 (£150,001 to £250,000) is taxed at 2%, giving £2,000. The remaining £150,000 is taxed at 5%, giving £7,500. Total is £9,500. Check: this does not match the keyed option, so the correct figure must be recomputed as £9,500.
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