What is Stamp Duty?
Stamp Duty Land Tax is more commonly known as ‘Stamp Duty’. It is a payable tax that is levied on single property purchases. In Past times a physical stamp used to be attached to or impressed on the document to denote that stamp duty had been paid before the document was legally effective. Today, we no longer require an actual stamp, but unfortunately the Tax is a reality of purchasing property in the UK.
When does it have to be paid and how is that done?
Stamp Duty is paid when your mortgage completes. It will be paid by your solicitor as part of the conveyancing process and added to their invoice for you to pay. You will have to make sure that you have funds available for the solicitor to make the transaction.
Can I delay payment or add it to the mortgage?
Unfortunately, the answer is, no and no. Stamp Duty must be paid at the same time the mortgage completes and it is not allowed be paid by adding it to the mortgage
How much will I have to pay?
There are various items to consider when calculating Stamp Duty.
- Property Value?
- 1st time buyer?
- Do you already own a property?
- Current rates set by the Government?
- Are there any special offers from the Government (often used to stimulate the market)?
- Does the property have a commercial element?
To make it easier for you here is a link that will take you the Gov.uk Stamp Duty calculator.
