Stamp duty is a significant part of the cost of purchasing a house. Cheap accountants in London will illustrate Stamp Duty in this article and show you how it works.
When buying a home, you'll have to take in a lot of detail, and Stamp Duty is one of the most significant costs you'll encounter. The sum will differ based on your circumstances, but we'll show you how to calculate it.
WHAT IS STAMP DUTY TAX AND HOW DOES IT WORK?
Stamp Duty is a property tax in the United Kingdom that you pay when you buy a house or a plot of land. Stamp Duty Land Tax, or SDLT, is a tax that applies to people who purchase properties for more than a certain amount in England. The schemes are somewhat different, but the concepts are the same.
The amount you pay is determined by the intent and value of the property you choose to buy, as well as your buyer type (first-time buyer, previous homeowner, landlord, etc.).
There are a few myths about Stamp Duty, but that's simply because not everyone is aware of it - particularly those who haven't dealt with the property market for a long time.
Cheap contractor accountants will help you to clear these myths right away.
So, if you're new to this, keep these things in mind:
Stamp Duty is paid by the buyer of a house, not the seller. When you sell your home, you never have to pay Stamp Duty. When you sell a property that isn't your primary home, you can have to pay Capital Gains Tax.
Even on the buy-to-let estate, you can't subtract Stamp Duty from your income tax. You can, however, subtract it from your taxable gains to lower the amount of Capital Gains Tax you have to pay when you sell a home.
Stamp Duty is a tax in and of itself, but you don't have to pay VAT on it. You also don't have to pay VAT on a property purchase.
There are no Stamp Duty Exemption Zones. Your eligibility for an exemption is determined by your circumstances and the value of your home.
Comments