Version Superseded: 15/09/2016
Point in time view as at 12/02/2015.
Finance Act 2003, Cross Heading: Amount of tax chargeable is up to date with all changes known to be in force on or before 06 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(1)The amount of tax chargeable in respect of a chargeable transaction [F1to which this section applies] is [F2determined in accordance with subsections (1B), (1C) and (2)].
[F3(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.]
[F4(1B)If the relevant land consists entirely of residential property and the transaction is not one of a number of linked transactions, the amount of tax chargeable is determined as follows—
Step 1 Apply the rates specified in the second column of Table A below to the parts of the relevant consideration specified in the first column of that Table.
Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts).
| Part of relevant consideration | Rate |
|---|---|
| So much as does not exceed £125,000 | 0% |
| So much as exceeds £125,000 but does not exceed £250,000 | 2% |
| So much as exceeds £250,000 but does not exceed £925,000 | 5% |
| So much as exceeds £925,000 but does not exceed £1,500,000 | 10% |
| The remainder (if any) | 12% |
(1C)If the relevant land consists entirely of residential property and the transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the particular transaction under consideration is determined as follows—
Step 1 Apply the rates specified in the second column of Table A in subsection (1B) to the parts of the relevant consideration specified in the first column of that Table.
Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts).
Step 3 Multiply the amount given by Step 1 or Step 2, as the case may be, by—
where—
C is the chargeable consideration for the transaction, and
R is the relevant consideration.]
(2)[F5If the relevant land consists of or includes land that is not residential property, the amount of tax chargeable is the percentage of the chargeable consideration for the transaction determined in accordance with Table B below by reference to the amount of the relevant consideration.]
| 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 [F6subsections (1B) and (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)[F7For the purposes of subsections (1C) and (2),] 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 [F874(2) and (3)] ([F9exercise of collective rights by tenants of flats]), F10...
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(which [F11provides] 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).
F12(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Words 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)
F2Words in s. 55(1) substituted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), s. 1(2) (with s. 2(3)-(6))
F3S. 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)
F4S. 55(1B)(1C) inserted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), s. 1(3) (with s. 2(3)-(6))
F5Words in s. 55(2) substituted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), s. 1(4) (with s. 2(3)-(6))
F6Words in s. 55(3) substituted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), s. 1(5) (with s. 2(3)-(6))
F7Words in s. 55(4) inserted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), s. 1(6) (with s. 2(3)-(6))
F8Words 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)
F9Words 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)
F10Words 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
F11Word 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
F12S. 55(7) omitted (with effect in accordance with s. 2(2) of the amending Act) by virtue of Stamp Duty Land Tax Act 2015 (c. 1), s. 1(7) (with s. 2(3)-(6))
Modifications etc. (not altering text)
C1S. 55(2) modified (temp.) (21.7.2009) by Finance Act 2009 (c. 10), s. 10(1)
C2S. 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
I1Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)
Schedule 4A provides for the calculation of the tax chargeable in respect of certain transactions involving higher threshold interests in dwellings.]
Textual Amendments
F13S. 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
Schedule 5 provides for the calculation of the tax chargeable where the chargeable consideration for a transaction consists of or includes rent.
Commencement Information
I2Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)
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