What “Stamp duty”

For many buyers and investors who have opted for the UK, of course, a big role plays the fact that residential property in the UK is exempt from the annual property tax, paid by property owners in other countries.

When buying property in the UK you only pay Stamp Duty.

What is a “stamp of dyuti” (Stamp Duty) ?

Full English abbreviation of the term: Stamp Duty Land Tax (SDLT) translates roughly as “Stamp duty land tax” . In the UK, Stamp duty is charged on the purchase or other transfer of title to land or other real estate. The amount of Stamp duty set as a percentage of the property value and is calculated on a progressive scale. The more expensive the property is subject to a higher rate of SDLT. The amount of SDLT may also vary depending on the purposes for which the property is purchased for residential or commercial and what type of property ownership – the “Freehold” or “Leasehold”.

Stamp Duty Land Tax (SDLT) is payable on the excess of the purchase amount a certain threshold.

All real estate transactions and land transactions must be reported the information to the tax Department in the UK – HM Revenue & Customs (HMRC) by submitting tax returns to the applicable statutory deadline, even if the obligation to pay Stamp Duty Land Tax (SDLT) is missing.

If the property passes on the right “Leasehold” used for residential purposes ( as all apartments in London and in the UK exclusively transferred the rights of the “Leasehold”), for buyers – physical persons, the value of “stump dyuti” will be (with relevant value):

up to £125000 – 0%

from £125001 – £250000 – 2%

from £250001 – £925000 – 5%

from £925000 – up to £1.5 million – 10%

from £1.5 million and above – 12%

In the UK, reduced Stamp duty

The scale is valid from 04.12.2014 years and aims to dramatically reduce the tax burden in the lower price sector of the real estate market.

The final completion of the purchase and receipt of state document confirming your right to the property at HM Land Registry (registration authority the UK) is impossible without paying Stamp duty.