What is Stamp Duty?
What we think of as Stamp Duty is more commonly know as Stamp Duty Land Tax. It is a tax that is levied on single property purchases. A physical stamp use to be attached to or impressed on the document to denote that stamp duty had been paid before the document was legally effective. Nowadays we no longer require an actual stamp, but 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 the mortgage completes and will be paid by your solicitor as part of the conveyancing process. You will have to make sure that you have funds available from the solicitor to make the transaction.
Can I delay payment or add it to the mortgage?
In short, no and no. Stamp Duty must be paid at the same time the mortgage completes and it can not be paid by adding it to the mortgage.
How much will I have to pay?
There are a number of variables to consider when working out Stamp Duty.
- Property Value
- Are you a 1st time buyer?
- Do you already own a property?
- What are the 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 simple for you here is a link that will take you the Gov.uk Stamp Duty calculator.
