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Do you pay VAT on Stamp Duty?

PokerPlayer
PokerPlayer Posts: 1 Newbie
in House buying, renting & selling
Hi,

Just wondering.

Thanks for any replies!

Comments

  • Cidersid
    Cidersid Posts: 72 Forumite
    A tax on a tax???

    don't tell gordon!!!
  • LandyAndy
    LandyAndy Posts: 26,377 Forumite
    First Anniversary First Post
    Do you pay VAT on Stamp Duty?

    No.
  • noh
    noh Posts: 5,797 Forumite
    Name Dropper First Post First Anniversary
    Cidersid wrote: »
    A tax on a tax???

    don't tell gordon!!!
    Already happens VAT is charged on fuel duty on petrol/desiel and duty on alcohol and tobacco.
  • googler
    googler Posts: 16,103 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Cidersid wrote: »
    A tax on a tax???

    don't tell gordon!!!

    It's Value Added Tax - an addition to items or services which have a value. Since Stamp Duty is of itself a tax on a transaction, and has no intrinsic value....
  • Richard_Webster
    Richard_Webster Posts: 7,646 Forumite
    First Anniversary First Post Combo Breaker
    Do you pay VAT on Stamp Duty?

    No.

    But you do pay SDLT (new name for Stamp Duty) on VAT!

    Some commercial properties are sold or leased with VAT added and you do then pay SDLT on the figure plus the VAT!
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
  • Viper_7
    Viper_7 Posts: 1,220 Forumite
    noh wrote: »
    Already happens VAT is charged on fuel duty on petrol/desiel and duty on alcohol and tobacco.

    Belive the post was joking!

    Taxed for earning it.
    Taxed for spending it.
    Taxed for saving it.
    Taxed on it when you kick the bucket.
  • JasonLVC
    JasonLVC Posts: 16,762 Forumite
    First Anniversary Combo Breaker
    SDLT does indeed then have VAT added to it - where of course, the property being sold is subject to VAT.

    If the property is not subject to VAT, then no VAT is charged....so basically, if it is a commercial property then high chance of SDLT+VAT, if a residential property then no VAT will be added.

    VAT is added on top of the selling price of something. The selling price will be made up of the cost the retailer wants plus any additional duty - depending upon what the item is (fags, beer, fuel,etc). If you import goods from outside the EU over a certain value it will also be subject to import duty + VAT, so yep, tax upon a tax.

    VAT is not a "value added" tax, it is a transactional tax - the phrase "value added" is simply the most stupid description for this tax ever - hence people's confusion.
    Anger ruins joy, it steals the goodness of my mind. Forces me to say terrible things. Overcoming anger brings peace of mind, a mind without regret. If I overcome anger, I will be delightful and loved by everyone.
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