SolvedSDLTM00310A | Scope: What is chargeable: Land transactions: Notifiable transactions FA03/S77: examples
From HM Revenue & Customs · Stamp Duty Land Tax Manual
Example 1
The purchase of a residential property by and individual for £50,000. Neither first time buyers relief of Higher Rate for Additional Dwelling apply to the purchase. For further details please refer to SDLTM29800 and SDLTM09730
As the chargeable consideration does not exceed £125,000 Stamp Duty Land Tax is chargeable at the 0% rate.
Although no tax is payable the obligation to notify the transaction to HM Revenue & Customs on form SDLT1 remains as the consideration is not less than £40,000 or more.
Example 2
The purchase of replacement residential property by an individual for £1.
No tax is payable and the transaction is not notifiable because of the exemption in FA03/S77(3)(b) for transactions under £40,000.
Example 3
A lease for 999 years is granted for no premium and a peppercorn rent.
The transaction is not notifiable as there is no chargeable consideration.
Example 4
A lease for 999 years is granted for no premium and a £5 annual rent.
As the chargeable consideration is less than £40,000 notification is not required.