SDLTM09715 - Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: exercise of collective rights by tenants of flats FA03/S74

Where FA03/S74 applies, the amount of SDLT chargeable on the acquisition of the freehold of the block is determined by dividing the total chargeable consideration by the number of qualifying flats, calculating the amount of tax due on that sum and then multiplying the result by the number of qualifying flats.

Where the amount arrived at by dividing the total chargeable consideration by the number of qualifying flats is equal to, or less than, the higher rate threshold, the amount of tax due is set by reference to FA03/S55.

Where the amount arrived at by dividing the total chargeable consideration by the number of qualifying flats exceeds the higher rate threshold, the 17 per cent higher rate charge will apply if the purchaser is a company or is otherwise within the higher rate charge.