OpenLegislation

Section 55 Amount of tax chargeable: generalI1

United Kingdom

(1)

The amount of tax chargeable in respect of a chargeable transaction F1to which this section applies is F2determined in accordance with subsections (1B) F3and (1C).

F4(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.

C1C2(F51B)

If F6... 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 F7the appropriate table below to the parts of the relevant consideration specified in the first column of F8the appropriate table.

    F9“The “appropriate table” is—

    (a) Table A, if the relevant land consists entirely of residential property, and

    (b) Table B, if the relevant land consists of or includes land that is not residential property.

  • Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts).

    TABLE A: RESIDENTIAL

    Part of relevant considerationRate
    So much as does not exceed £125,0000%
    So much as exceeds £125,000 but does not exceed £250,0002%
    So much as exceeds £250,000 but does not exceed £925,0005%
    So much as exceeds £925,000 but does not exceed £1,500,00010%
    The remainder (if any)12%

    F10Table B: Non-residential or mixed

    Relevant considerationPercentage
    So much as does not exceed £150,0000%
    So much as exceeds £150,000 but does not exceed £250,0002%
    The remainder (if any)5%
(1C)

If F11... 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 F12the appropriate table in subsection (1B) to the parts of the relevant consideration specified in the first column of F13the appropriate table.

    F14“The “appropriate table” is—

    (a) Table A, if the relevant land consists entirely of residential property, and

    (b) Table B, if the relevant land consists of or includes land that is not residential property.

  • 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—

    C R

    where—

    C is the chargeable consideration for the transaction, and

    R is the relevant consideration.

F15(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)

For the purposes of F16subsection (1B) —

(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

F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C3(4)

F18For the purposes of F19subsection (1C) —

(a)

the relevant land is any land an interest in which is the main subject-matter of any of F20the linked transactions, and

(b)

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

F21(4A)

Schedule 4ZA (higher rates for additional dwellings and dwellings purchased by companies) modifies this section as it applies for the purpose of determining the amount of tax chargeable in respect of certain transactions involving major interests in dwellings.

(5)

This section has effect subject to—

  • section F2274(1B) (F23exercise of collective rights by tenants of flats), F24...

  • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(which F25provides for the F26amount 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).

F27(7)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

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

Words 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))

F3

Words in s. 55(1) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(2)

F4

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)

F5

S. 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))

F6

Words in s. 55(1B) omitted (with effect in accordance with s. 127(12)(13) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 127(3)(a)

F7

Words in s. 55(1B) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(3)(b)(i)

F8

Words in s. 55(1B) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(3)(b)(ii)

F9

Words in s. 55(1B) inserted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(3)(b)(iii)

F10

S. 55(1B) Table B inserted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(3)(c)

F11

Words in s. 55(1C) omitted (with effect in accordance with s. 127(12)(13) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 127(4)(a)

F12

Words in s. 55(1C) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(4)(b)(i)

F13

Words in s. 55(1C) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(4)(b)(ii)

F14

Words in s. 55(1C) inserted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(4)(b)(iii)

F15

S. 55(2) omitted (with effect in accordance with s. 127(12)(13) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 127(5)

F16

Words in s. 55(3) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(6)(a)

F17

Words in s. 55(3)(b) omitted (with effect in accordance with s. 127(12)(13) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 127(6)(b)

F18

Words 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))

F19

Words in s. 55(4) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(7)(a)

F20

Words in s. 55(4)(a) substituted (with effect in accordance with s. 127(12)(13) of the amending Act) by Finance Act 2016 (c. 24), s. 127(7)(b)

F21

S. 55(4A) inserted (with effect in accordance with s. 128(5)(6) of the amending Act) by Finance Act 2016 (c. 24), s. 128(2)

F22

Word in s. 55(5) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 132(a)

F23

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)

F24

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

F25

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

F26

Word in s. 55(5) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 132(b)

F27

S. 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

C1

S. 55(1B) modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended 10.6.2021) by 2021 c. 26, s. 87(2))

C2

S. 55(1B) modified (temp.) (8.2.2023) by Stamp Duty Land Tax (Temporary Relief) Act 2023 (c. 2), s. 1

C3

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

I1

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

Notes on Part 4

Modifications

C1

Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)

C2

Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.

C3

Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)

C4

Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)

C5

Pt. 4 modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended (10.6.2021) by 2021 c. 26, s. 87(2))

C6

Pt. 4 modified (temp.) (10.6.2021) by 2020 c. 15, s. 1A (as inserted by Finance Act 2021 (c. 26), s. 87(3))

C7

Pt. 4 applied (19.3.2025) by The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 29(2)(5) (with reg. 63)

C8

Pt. 4 modified (19.3.2025) by The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 28, 30 (with reg. 63)