Care Homes: Stamp Duties

Treasury written question – answered on 29th January 2008.

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Photo of Lembit Öpik Lembit Öpik Shadow Minister (Housing), Department for Communities and Local Government

To ask the Chancellor of the Exchequer

(1) if he will review the levels of stamp duty charged on care home leases; and if he will make a statement;

(2) whether there is an upper limit to the level of stamp duty which may be levied on individual care home leases; and if he will make a statement;

(3) what assessment he has made of the relationship between the cost of residential care home provision and the level of stamp duty levied on care home leases; and if he will make a statement.

Photo of Jane Kennedy Jane Kennedy Financial Secretary, HM Treasury

Stamp duty land tax on the grant of a new lease is charged separately on any premium and on the rent payable under the lease. The charge on the rent is 1 per cent. of the amount by which the discounted net present value of the rent payable exceeds the stamp duty land tax threshold. Stamp duty land tax on the premium is based on the amount of premium paid. Details of stamp duty land tax rates and thresholds can be found at:

www.hmrc.gov.uk/so

No assessment has been made of the relationship between the cost of residential care home provision and the levels of stamp duty land tax levied on care home leases. But stamp duty land tax, like all other taxes, is kept under constant review as part of the Budget process.

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