When you transfer or purchase property in the United Kingdom or UK, you are legible to stamp duty. You need to know that it is not buying and transferring property alone but also buying and transferring land whereby the value surpass the threshold that was set by Her Majesty Revenue and Customs.
Officially, this duty is known as SDlT or Stamp Duty Land Tax. Even if you are not going to pay for the stamp duty, HMRC has to be no be informed of the land transactions and. There are rules and regulations that need to be followed when you need to have this stamp. These rules might look quite easy in the beginning but it is good to seek the services of registered and qualified lawyer over the issue. You also need to know that the rules used in this case may vary from how you use the property and also if it is leasehold or freehold.
It is possible to calculate your own stamp duty as long as you have the knowledge. There are many ways in which you can be able to get this information. With the introduction of internet in the modern world, there are many sites that have dedicated themselves in availing this information to those in need. You can be able to browse through the many websites so as to get this information.
The use of stamp duty mitigation services are also worth when in need stamp duty calculator. You can be able to enquire about anything to do with this calculation and with the help of lawyers; you will be able to get relevant information that can help you understand how to calculate this duty. On the other hand, there are qualified, experienced and registered lawyers in UK. With these professions, you can be able to visit their websites or schedule a meeting with them so as to inquire more about calculating this duty.
There are certain rates that are calculated on different purchase prices thus it is worth knowing how these rates are charged. This will help you determine the charges to be deducted from your transaction.
If the purchase price of your property/transfer value or lease premium is up to 125,000 GBP, then there are no charges while if your purchase price is over 125,000 GBP to 250,000 GBP, you will be charged 1 (0ne) percent. From 250,000 GBP to 500,000 GBP you are legible to 3 percent deduction while if the purchase price is over 500, 000 GBP to 1m GBP, you are legible to 4 percent deduction. On the other hand, if the transaction is above 1m gbp, then stamp duty rates equals to 5 percent. This is applicable for residential property or land and that as from April 2011, rates will be applicable.
For commercial or mixed use stamp duty, the rates are as follows.
Up to 150,000 GBP purchase price, transfer value or lease premium and that annual rent is below 1000 GBP, the SLDT rate is nil while for those whose rent is above 1000 GBP , SLDT rate is 1 percent. From 150,000 GBP to 250, 000 GBP, 1percent is calculated as the SDLT rate while 250,000 GBP to 500,000 GBP 3 percent is the price. If your lease premium is above 500,000 GBP, you are legible to 4 percent SDLT rate. You also need to know that if the value of your purchase price is above payment threshold, there are appropriate SLDT rates calculated on the whole amount paid.
You need to know that stamp duty increases with property value and that they are different for commercial and residential property. With this knowledge and a stamp duty calculator, you are in a better position to establish your duty tax liability when buying property in UK.
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Stamp duty calculator is with no doubt the tool that you need so as to help you calculate stamp duty rates that you will be charged. These SDLT rates are applicable in the UK when you buy, lease or sell property as well as land. From this article, you will ascertain that there are different rates meant for commercial and private property. With the information provided in this article, you are able to make your own calculations.
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