Q:

Is stamp duty payable on a transfer of equity?

A:

Quick Answer

Stamp duty land tax is generally payable on the amount of equity transferred if the transfer involved an exchange of items of economic value such as money, the buyout of a mortgage or an exchange of stocks for equity in a property.

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Full Answer

The stamp duty land tax is most often charged on the consideration, or amount of the equity being transferred. There are some situations where equity can be transferred without incurring stamp duty land tax, such as transfers that are below the stamp duty tax threshold. If the transfer of equity is a gift, meaning no money or items of monetary value are exchanged, then stamp duty land tax is not applicable.

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Related Questions

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    Is money that is inherited taxable?

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    In general, money that is inherited is not considered income and is not subject to state or federal income tax. However, there are instances when one might be taxed on an inheritance. For instance, if one inherits an IRA or 401(k), distributions taken must be included in federal income.

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    Do I have to pay stamp duty on my property?

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