Part 1Charges, rates etc

Stamp duty land tax

7Rate in respect of residential property where consideration over £1m

1

In section 55(2) of FA 2003 (amount of SDLT chargeable), in Table A (bands and percentages for residential property), for the final entry (cases where relevant consideration is more than £500,000 to be chargeable at 4%) substitute—

More than £500,000 but not more than £1,000,000

4%

More than £1,000,000

5%

2

The amendment made by subsection (1) has effect in relation to any land transaction of which the effective date is on or after 6 April 2011.

3

But that amendment does not have effect in relation to any transaction—

a

effected in pursuance of a contract entered into and substantially performed before 25 March 2010, or

b

effected in pursuance of a contract entered into before that date and not excluded by subsection (4).

4

A transaction effected in pursuance of a contract entered into before 25 March 2010 is excluded by this subsection if—

a

there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 25 March 2010,

b

the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or

c

on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.