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.

Know More

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.

Learn more about Taxes
Sources:

Related Questions

  • Q:

    When is Stamp Duty payable?

    A:

    As of June 2014, Stamp Duty is payable either at the time of purchase or within 30 days of document execution, according to HM Revenue & Customs. If the Stamp Duty is not paid within 30 days, additional penalties and interest may be applicable.

    Full Answer >
    Filed Under:
  • Q:

    What is a transfer of equity?

    A:

    A transfer of equity is a change of ownership where one of the original owners stays on the deed or title. It is important to note that in a transfer of equity the ownership of the property changes hands without the property being sold.

    Full Answer >
    Filed Under:
  • Q:

    Is money that is inherited taxable?

    A:

    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.

    Full Answer >
    Filed Under:
  • Q:

    What is stamp duty land tax?

    A:

    Stamp duty land tax, or SLDT, replaced stamp duty in the UK and took effect on Dec. 1, 2003. Land and building transactions in the UK require payment of SLDT.

    Full Answer >
    Filed Under:

Explore