What is Stamp Duty?

When you buy a property in England and Wales, you are likely to pay stamp duty. This is the money that you pay the government for ensuring that the documents and transactions are legally binding. The duty must be paid in full and collected on time, or you can incur fines. Stamp duty is paid on a legal document, so it must be paid in full at the time of execution. Usually, the buyer is responsible for paying this tax, but it is something that a solicitor will help with and pay as part of the purchasing process. When you require Ascot solicitors to assist with conveyancing and associated matters, visit a site like https://www.parachutelaw.co.uk/

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In addition, stamp duty applies differently to first-time buyers. A few years ago, the government introduced stamp duty to discourage investors from purchasing estates. First-time buyers are eligible for a lower rate if they’ve never owned a home in the UK, and they must be planning to live at the property. First-time buyers can take advantage of these lower rates for properties over £300,000. Properties under this price won’t be subject to stamp duty for first time buyers.

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The government determines the amount of stamp duty by a number of different factors. The amount of stamp duty payable increases as the price of the property increases and the stamp duty percentage is divided into different bands for this purpose. It is a tax payable to HMRC on both property and land purchases.