A stamp duty land tax calculator is a tool that allows you to determine the stamp duty placed on the purchase of land or property. A stamp duty is a tax that is applied to specific types of documents. In real estate, a stamp duty applies to the documents associated with the sale or transfer of land or property. Unfortunately, there is no single formula or calculator you can use to determine the stamp duty on a real estate purchase. Instead, you need to use a calculator designed for the specific type of transaction in which you are taking part. The three primary types of stamp duty calculators are those for free hold transactions, new leases, and abnormal rent increases.
A freehold transaction calculator for stamp duty will help you figure out how much money you owe in taxes when you buy or transfer freehold property. To calculate the freehold transaction stamp duty, you will need to have a few pieces of information on hand: the date the purchase was completed, the total amount of considerations for transactions linked to the purchase, a breakdown of how rent will be divided, if applicable, and if your property qualifies for Disadvantaged Areas Relief.
It is important to note that the freehold transaction stamp duty land tax calculator does not apply to leases that took place from 3 September 2008 to 21 April 2009. During that time, you should use the new lease stamp duty calculator.
For the new lease stamp duty calculator UK, you’ll need some different information. This includes the effective date of the transaction, the start and end dates of the lease, the total premium payable, the rent payable in each of the first five years, and if the property qualifies for Disadvantaged Areas Relief.
However, the new lease stamp duty calculator 2012 will not work for your new lease if it is a wholly residential property or if the term is 21 years or more.
Finally, you may need to use a different type of calculator if you are subject to an abnormal rent increase, such as a mortgage repayments calculator. The calculator, great for those who need to figure out the stamp duty for first time home buyers, will help determine if the rent increase that comes in the fifth year of a lease is abnormal. If it is, the calculator will help you figure out how much you should really being paying. The calculator applies only to those transactions that happened on or after 1 December 2003.
To use the abnormal rent calculator, you’ll need to know the date the lease started, the date it is scheduled to end, the net present value, the amount of stamp duty paid originally, the date the rent increase is due, the new rent payable, whether or not the property is residential, and the highest annual rent in the first five years.
You can see that a lot of information goes into the abnormal rent calculator. This is because it has to deal with a current lease in which a stamp duty was already originally paid. The abnormal rent calculator is for those in the fifth year of their lease, so there are more monetary considerations that need to get factored into the equation. Thus, the stamp duty tax calculator for abnormal rent is considered the most difficult to use.