People who procure or file legal documents, especially when they transfer assets or sell a property, need to pay something called stamp duty. These literally are stamps attached to the said legal documents. The costs depend on location, the type of transaction as well as the price of the property you are buying or selling.
Stamp Calculator notes that the stamps are powerful because the documents aren’t considered legal and binding without them.
Countries That Require Stamp Tax
Stamp duty is a requirement in various countries in the Commonwealth as well as states in the US, Australia, Singapore. The U.K. and Ireland also implement this tax.
England, Northern Ireland, as well as Wales, have the same rates for stamp duties, but Scotland has its own rate bands. If you are buying an expensive piece of property, expect to pay higher stamp duties.
Determining How Much You Need to Pay
Take for example a homeowner who is buying an additional property that is worth over £40,000. They will be paying additional stamp duty taxes. There are also different computations for buyers who are purchasing second homes or rentals.
If you are unsure about the rates, you need to pay for your stamp duties. It would be best to seek the help of professionals and experts who can do the calculations for you. It will save you the hassle and possible errors you might commit to your own calculations and budgeting.