Finance Act 2003

Amount of tax chargeable U.K.

55 Amount of tax chargeable: general U.K.

(1) The amount of tax chargeable in respect of a chargeable transaction [F1 to which this section applies] is a percentage of the chargeable consideration for the transaction.

[F2 (1A) This section applies to any chargeable transaction other than a transaction to which paragraph 3 of Schedule 4A or step 4 of section 74(1A) (higher rate for certain transactions) applies.]

(2) [F3 The percentage mentioned in subsection (1)] is determined by reference to whether the relevant land—

(a) consists entirely of residential property (in which case Table A below applies), or

(b) consists of or includes land that is not residential property (in which case Table B below applies),

and, in either case, by reference to the amount of the relevant consideration.

Table A: Residential

Relevant consideration	Percentage
Not more than [F4 £125,000]	0%
More than [F4 £125,000] but not more than £250,000	1%
More than £250,000 but not more than £500,000	3%
[F5 More than £500,000 but not more than £1,000,000	4%]
[F6 More than £1,000,000 but not more than £2,000,000	5%
More than £2,000,000	7%]

Table B: Non-residential or mixed

Relevant consideration	Percentage
Not more than £150,000	0%
More than £150,000 but not more than £250,000	1%
More than £250,000 but not more than £500,000	3%
More than £500,000	4%

(3) For the purposes of subsection (2)—

(a) the relevant land is the land an interest in which is the main subject-matter of the transaction, and

(b) the relevant consideration is the chargeable consideration for the transaction,

subject as follows.

(4) If the transaction in question is one of a number of linked transactions—

(a) the relevant land is any land an interest in which is the main subject-matter of any of those transactions, and

(b) the relevant consideration is the total of the chargeable consideration for all those transactions.

(5) This section has effect subject to—

• section [F7 74(2) and (3)] ([F8 exercise of collective rights by tenants of flats]), F9 ...

• F9 ...

(which [F10 provides] for the rate of tax to be determined by reference to a fraction of the relevant consideration).

(6) In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to section 56 and Schedule 5 (amount of tax chargeable: rent).

(7) References in this Part to the “rate of tax” are to the percentage determined under this section [F11 , step 4 of section 74(1A) or paragraph 3 of Schedule 4A] .

Textual Amendments

F1 Words in s. 55(1) inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 2(2)

F2 S. 55(1A) inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 2(3)

F3 Words in s. 55(2) substituted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 2(4)

F4 Sum in s. 55(2) substituted (with effect in accordance with s. 162(4) of the amending Act) by Finance Act 2006 (c. 25), s. 162(1)

F5 Words in s. 55(2) substituted (with effect in accordance with s. 7(2)-(4) of the amending Act) by Finance Act 2010 (c. 13), s. 7(1)

F6 Words in s. 55(2) substituted (with effect in accordance with s. 213(2)-(4) of the amending Act) by Finance Act 2012 (c. 14), s. 213(1)

F7 Words in s. 55(5) substituted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 2(5)

F8 Words in s. 55(5) substituted (with effect in accordance with s. 80(7) of the amending Act) by Finance Act 2009 (c. 10), s. 80(6)

F9 Words in s. 55(5) omitted (with effect in accordance with s. 29(4) of the amending Act) by virtue of Scotland Act 2012 (c. 11), s. 44(2)(b)(3)(b), Sch. 3 para. 5(a) (with s. 29(5)(6)); S.I. 2015/637, art. 2

F10 Word in s. 55(5) substituted (with effect in accordance with s. 29(4) of the amending Act) by Scotland Act 2012 (c. 11), s. 44(2)(b)(3)(b), Sch. 3 para. 5(b) (with s. 29(5)(6)); S.I. 2015/637, art. 2

F11 Words in s. 55(7) inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 2(6)

Modifications etc. (not altering text)

C1 S. 55(2) modified (temp.) (21.7.2009) by Finance Act 2009 (c. 10), s. 10(1)

C2 S. 55(4) excluded (with effect in accordance with reg. 1(2) of the amending S.I.) by The Stamp Duty Land Tax (Zero-Carbon Homes Relief) Regulations 2007 (S.I. 2007/3437), regs. 1(1), 9 (with reg. 3)

Commencement Information

I1 Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F12 55A Amount of tax chargeable: higher rate for certain transactions U.K.

Schedule 4A provides for the calculation of the tax chargeable in respect of certain transactions involving higher threshold interests in dwellings.]

Textual Amendments

F12 S. 55A inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 3

56 Amount of tax chargeable: rent U.K.

Schedule 5 provides for the calculation of the tax chargeable where the chargeable consideration for a transaction consists of or includes rent.

Commencement Information

I2 Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)