Citizens of a country must pay their taxes. It is their contribution to help their country more powerful, affluent and advanced. Taxes are among the sources of funds for the government’s projects. The stamp duty land tax (SDLT) is one of the taxes that an individual has to pay at some point.
What is Stamp Duty Land Tax?
Whilst many people know that SDLT is the tax that you must pay when buying a property, only a few will try to estimate how much they will have to pay. Most just rely on whichever calculator they can find on the Internet. It is because the computation for the SDLT is complicated.
Different factors affect the amount of SDLT, and the rates vary according to the purchase price of the property. As such, buyers must look for reliable SDLT calculators to ensure accurate estimates.
You must pay for a stamp duty tax when you buy land or property in the UK. The price of your SDLT depends on the values indicated on a threshold imposed by the government. You must settle the payment within 30 days after the purchase of the property.
Factors Affecting the Rate of SDLT
- Whether the property is residential or non-residential
- Whether you are paying for the land or the infrastructure
- The pieces of land that you will buy in one transaction
- Whether it is leasehold or freehold
- Whether the pieces of land (if you are buying multiple lands) are coming from a single dealer
- Whether it is your sole property
- Whether it will be your property or a corporate shared property
The main factor affecting the rate of your SDLT is whether the property that you want to buy is residential or commercial. Residential begins with the Â£125,000 threshold, and non-residential begins with Â£150,000. After that, the rates on the excess amount are incremental.