Stamp duty on AST income

snifferdog · Postby **snifferdog** » Wed Jul 16, 2003 6:00 am

Would stamp duty be applicable to rental income of approx Â£14400 pa? What is the exact situation with stamp duty and rental income?

snifferdog · Postby **snifferdog** » Wed Jul 16, 2003 6:01 am

Should have said this would be a furnished letting.

Ian McTernan CTA · Postby **Ian McTernan CTA** » Wed Jul 16, 2003 9:09 am

Stamp duty is not applicable to rental income, it is liable to income tax.

snifferdog · Postby **snifferdog** » Wed Jul 16, 2003 10:35 am

Let me rephrase my query...

I did read somewhere that a Short Tenancy Agreement is a stampable document but I am not sure of the exact conditions where this applies. In my situation, I could have rental income around Â£14000pa and wanted to know if this amount has any impact or is Stamp Duty applicable to all agreements. Also what are the implications of having unstamped documents eg in a dispute which goes to court.

Ian McTernan CTA · Postby **Ian McTernan CTA** » Wed Jul 16, 2003 2:15 pm

Sorry, the agreement is, I think, liable to the minimum stamp duty charge of 5.00! Think would be best to ask a solicitor about this and also your query re having unstamped documents...

paulc · Postby **paulc** » Thu Jul 17, 2003 12:30 am

I assume the income is coming from a single tenancy (a furnished tenancy for less than Â£5,000 per year is not subject to stamp duty). In that case stamp duty depends on what the fixed term element of the tenancy is. If it is less than a year, there is a fixed charge of Â£5. If it is a year or more, but less than seven, stamp duty is 1% of the average annual rent.
The main consequence of not stamping is that the agreement cannot be used as evidence in court proceedings.