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Encyclopedia > Stamp duty

Stamp duty is a form of tax that is levied on documents. Typically, a physical stamp (A tax stamp) must be attached to or impressed upon the document to denote that stamp duty has been paid before the document becomes legally effective. A tax (also known as a duty) is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ... An 1862 US 3-cent stamp used for proprietary articles A revenue stamp, tax stamp or fiscal stamp is a type of adhesive label used to collect taxes or fees on various items. ...

Contents

Australia

The Federal Australian government does not levy stamp duty. However, stamp duty is levied by the states on various instruments (i.e. written documents) and transactions. The rates of stamp duty vary from State to State, as do the nature of the instruments or transactions subject to duty. Some jurisdictions no longer require a physical document to attract what is now often referred to as "transaction duty." The states and territories of Australia make up the Commonwealth of Australia under a federal system of government. ...


Major forms of duty include the transfer duty on the sale of land, businesses, shares and other forms of dutiable property; mortgage duty; lease duty and duty on the hire of goods. Rebates or exemptions are available from transfer duty and mortgage duty for those purchasing their first home. A mortgage is a method of using property (real or personal) as security for the payment of a debt. ... This article or section should include material from Tenancy agreement A lease is a contract conveying from one person (the lessor) to another person (the lessee) the right to use and control some article of property for a specified period of time (the term), without conveying ownership, in exchange for...


On 20 April 2005, it was announced by the Treasurers of various States or Territories that they will phase out a number of duties over the course of the next 5 years. However, duty on transfer of ownership in land will remain. April 20 is the 110th day of the year in the Gregorian calendar (111th in leap years). ... 2005 (MMV) was a common year starting on Saturday of the Gregorian calendar. ...


Hong Kong

According to the Schedule 1 of Hong Kong Stamp Duty Ordinance Cap.117 (in short, SDO), Stamp duty is charged on some legal binding documents which are classified into 4 heads: Hong Kong Stamp Duty Ordinance Cap. ...

  • Head 1: All transactions of sale or lease of interests in Hong Kong immovable property.
  • Head 2: The transfer of Hong Kong Stock.
  • Head 3: All Hong Kong bearer instruments.
  • Head 4: Any duplicates and counterparts of the above documents.

In all the civil law systems, immovable property is the equivalent of real property in common law systems, i. ...

Head 2: Hong Kong Stock

One of examples is shares of companies which are either incorporated in Hong Kong or listed on the Hong Kong Stock Exchange. In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REITs. ... Incorporation (abbreviated Inc. ... Other Hong Kong topics Culture - Education Geography - History - Politics Hong Kong Portal The Exchange Exhibitation Hall The Hong Kong Stock Exchange (Traditional Chinese: , also 港交所; abbreviated as HKEX ; SEHK: 0388) is the stock exchange of Hong Kong. ...


Other than the said shares, the HK Stock is defined as:

  • Shares and marketable securites;
  • Units in unit trusts; and
  • Rights to subscribe for or to be allotted stock

Stamp Duty Computation

Stamp duty on a conveyance on sale of land is charged at progressive rates ranging from 0.75% to 3.75% of the amount of consideration. The maximum rate of 3.75% applies where the consideration exceeds HK$6 million. The Hong Kong dollar (currency code HKD) is the currency of the Hong Kong Special Administrative Region of the Peoples Republic of China, and has been the currency of Hong Kong since 1937. ...


Reference Link

  • Hong Kong Stamp Duty Ordinance Cap.117, Schedule 1 Heading

United Kingdom

Introduction

In the United Kingdom, stamp duty is a form of tax charged on instruments (that is, written documents), and requires a physical stamp to be attached to or impressed upon the instrument in question.


The scope of stamp duty has been reduced dramatically in recent years. Apart from transfers of shares and securities, the issue of bearer instruments and certain transactions involving partnerships, stamp duty was largely abolished in the UK from 1 December 2003. Stamp duty land tax (SDLT), a new transfer tax derived from stamp duty, was introduced for land transactions from 1 December 2003. Stamp duty reserve tax (SDRT) was introduced on agreements to transfer certain shares and other securities in 1986. In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REITs. ... Security is a type of transferable interest representing financial value. ... A bearer instrument is a document that indicates that the bearer of the document has title to property, such as shares or bonds. ... A partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested. ... December 1 is the 335th (in leap years the 336th) day of the year in the Gregorian calendar. ... 2003 (MMIII) was a common year starting on Wednesday of the Gregorian calendar. ... A transfer tax is a direct tax that is paid when title to property is transferred. ... December 1 is the 335th (in leap years the 336th) day of the year in the Gregorian calendar. ... 2003 (MMIII) was a common year starting on Wednesday of the Gregorian calendar. ... Stamp duty is a form of tax that is levied on documents. ...


History of UK stamp duties

Stamp duty was first introduced in the UK in 1694, during the reign of William and Mary under "An act for granting to Their Majesties several duties on Vellum, Parchment and Paper for 4 years, towards carrying on the war against France". Similar duties had been levied in the Netherlands. Stamp duty was so successful that it continues to this day through a series of Stamp Acts. Events February 6 - The colony Quilombo dos Palmares is destroyed. ... William III Mary II The phrase William and Mary usually refers to the joint sovereignty over the Kingdom of England and the Kingdom of Scotland of King William III and his wife Queen Mary II. Their joint reign began in February, 1689, when they were called to the throne by... A stamp act is a law enacted by a government that requires a tax to be paid on the transfer of certain documents such as property deeds. ...


During the 18th and early 19th centuries, stamp duties were extended to cover newspapers, pamphlets, lottery tickets, apprentices' indentures, advertisements, playing cards, dice, hats, gloves, patent medicines, perfumes, insurance policies, gold and silver plate, hair powder and armorial bearings. (17th century - 18th century - 19th century - more centuries) As a means of recording the passage of time, the 18th century refers to the century that lasted from 1701 through 1800. ... Alternative meaning: Nineteenth Century (periodical) (18th century — 19th century — 20th century — more centuries) As a means of recording the passage of time, the 19th century was that century which lasted from 1801-1900 in the sense of the Gregorian calendar. ... Polish soldiers reading a German leaflet during the Warsaw Uprising A pamphlet is an unbound booklet (that is, without a hard cover or binding). ... A lottery is a popular form of gambling which involves the drawing of lots for a prize. ... If youre looking for the TV show, see The Apprentice. ... An Indentured servant is an unfree labourer under contract to work (for a specified amount of time) for another person, often without any pay, but in exchange for accommodation, food, other essentials and/or free passage to a new country. ... Generally speaking, advertising is the paid promotion of goods, services, companies and ideas by an identified sponsor. ... Some typical Anglo-American playing cards from the Bicycle brand Set of 52 playing cards A playing card is a typically hand-sized piece of heavy paper or thin plastic. ... Two standard six-sided pipped dice with rounded corners. ... There are many different styles of hats. ... A glove (Middle English from Old English glof) is a type of garment which covers the hand. ... A patent is a set of exclusive rights granted by a state to a patentee (the inventor or assignee) for a fixed period of time in exchange for the regulated, public disclosure of certain details of a device, method, process or composition of matter (substance) (known as an invention) which... Perfume is a mixture of fragrant essential oils and aroma compounds, fixatives, and solvents used to give the human body, objects, and living spaces a pleasant smell. ... An Insurance contract determines the legal framework under which the features of an insurance policy are enforced. ... General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Atomic mass 196. ... General Name, Symbol, Number silver, Ag, 47 Chemical series transition metals Group, Period, Block 11, 5, d Appearance lustrous white metal Atomic mass 107. ... Heraldry in its most general sense encompasses all matters relating to the duties and responsibilities of officers of arms. ...


The attempted enforcement of the Stamp Act 1765 in the English colonies in America led to the outcry of no taxation without representation. In some ways, stamp duty led to the American War of Independence. The Stamp Act of 1765 (short title Duties in American Colonies Act 1765; 5 George III, c. ... For other American colonies, see European colonization of the Americas or British colonization of the Americas. ... No taxation without representation was a catchphrase in the period 1763-1775 that summarized a primary grievance of the American colonists in the Thirteen colonies leading to the Revolution. ... The American Revolutionary War (1775–1783), also known as the American War of Independence, was a war fought primarily between Great Britain and revolutionaries within thirteen of her North American colonies. ...


Historically, stamp taxes were administered by the Board of Stamps. This merged with the Board of Taxes in 1833/1834, and the Board of Inland Revenue was created under the Inland Revenue Board Act 1849 by merger of the Board of Excise and Board of Stamps and Taxes. Stamp taxes were then administered by the Inland Revenue Stamp Taxes business stream (formerly the Stamp Office). Another merger occurred in 2004, with the Inland Revenue and HM Customs & Excise to form HM Revenue & Customs which now itself manages stamp duty. The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty. ... In the UK, Her Majestys Customs and Excise is a department of the British Government. ... Her Majestys Revenue and Customs (HMRC) is a new department of the British Government created by the merger of the Inland Revenue and Her Majestys Customs and Excise which came into formal effect on 18 April 2005. ...


The Stamp Duties Management Act 1891 and the Stamp Act 1891 still contain much of the operative law on stamp duties, although there have been significant amendments subsequently and a partial consolidation was made in Finance Act 1999. The Stamp Act 1891 was the inspiration for many of the older Australian stamp duty Acts.


Stamp duty reserve tax

Stamp duty reserve tax (SDRT) was introduced under Finance Act 1986 to ensure that a form of tax equivalent to stamp duty would continue to be payable on the transfer of uncertificated shares. At that time, it was expected that the TAURUS share trading system would come into operation. In the event, SDRT was adapted for the charge to trading in uncertificated shares in CREST, and is charged on agreements to transfer shares and other securities. SDRT is not a stamp tax, but a self-assessed transfer tax which is usually collected automatically by stock market participants (such as brokers) when a transaction takes place. Taurus was a program that set to transfer the London Stock Exchange from paper communication to an automated system. ... CREST (although written like a acronym it does not stand for anything) is the Central Securities Depository for the U.K., Republic of Ireland, Isle of Man and Jersey equities and UK gilts. ...


Stamp duty remains in force for shares and securities that are held in certificated form which can only be transferred by using a physical stock transfer form, and runs in parallel to SDRT on agreements to transfer shares. Since 1986, both stamp duty and SDRT have been charged at a rate of 0.5% of the consideration for the transfer of shares (in the case of stamp duty, rounded up to the nearest £5). The same transaction may include an agreement to transfer shares which may trigger a liability to SDRT, and the agreement may later be completed by a transfer of the shares which is liable to stamp duty. Provided that the transfer is stamped within 6 years, the charge to SDRT is cancelled to avoid a double charge. In corporate law, a stock certificate (also known as certificate of stock or share certificate) is a legal document that certifies ownership of a specific number of stock shares in a corporation. ... Consideration is something that is done or promised in return for a contractual promise. ...


A higher rate of SDRT at 1.5% is charged for the issue or transfer of shares to a person who operates a depositary receipt scheme or a clearance service (other than CREST, which is exempted). The higher charge compensates for the fact that later transfers of depositary interests or through the clearance services will not attract SDRT. An American Depositary Receipt (ADR) is how the stock of most foreign companies trades in United States stock markets. ...


It is widely expected, although the UK Treasury may wish otherwise, that as a practical matter SDRT will not ultimately survive the introduction of the EU Markets in Financial Instruments Directive (MiFID.) which is designed to create a single market in financial services across the EU. As currently operated, SDRT will create a number of tax, legal and operational barriers that could effectively present an uneven playing field. It is totally unclear how UK Tax Authorities could hope to police transctions wholly effected in other member states.


There is little sign that this is clearly understood by the UK Government nor even faintly comprehended by the UK Stamp Office who are still stuck on the concept of imposing SDRT on transactions effected on national exchanges


Stamp duty land tax

Stamp duty land tax (SDLT) is a new tax in land transactions that was introduced by Finance Act 2003 and largely replaces stamp duty with effect from 1 December 2003. SDLT is not a stamp duty, but a form of self-assessed transfer tax. SDLT is charged on "land transactions" and for typical transactions in land, such as the buying and selling of a residential house, there is little change from stamp duty, except that a tax return is required to be made to the Inland Revenue and documents no longer need to be given a physical stamp. Like any other self-assessed tax, but unlike stamp duty, the Inland Revenue is able to enquire into an SDLT return and raise assessments to recover unpaid SDLT. December 1 is the 335th (in leap years the 336th) day of the year in the Gregorian calendar. ... 2003 (MMIII) was a common year starting on Wednesday of the Gregorian calendar. ... A transfer tax is a direct tax that is paid when title to property is transferred. ...


For residential house purchases, the current rates in the UK are as follows:

Consideration Rate
up to £125,000 0%
over £125,000 to £250,000 1%
over £250,000 to £500,000 3%
over £500,000 4%

SDLT is not a progressive tax, but rather works on a "slab" basis, so the above percentages apply to the whole of the purchase price. For example, a house priced at £250,000 would attract a SDLT of £2,500, but one of £250,001 would be liable to SDLT of £7,500. Some areas have been designated as disadvantaged areas and have relief from SDLT on residential transactions below a certain level. A progressive tax, or graduated tax, is a tax that is larger as a percentage of income for those with larger incomes. ...


In previous years, there had been a high level of house price inflation in the UK but no change in these thresholds, leading to a substantial increase in the revenue from SDLT through fiscal drag. In 2000-01, the Inland Revenue received £2.145bn from residential stamp duty. In 2002-03, it received £3.59bn [1]. Fiscal drag refers to the increase in tax revenue caused when the threshold of a tax is not increased in line with inflation. ... The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty. ...


In 2005, the threshold for paying SDLT was raised from £60,000 to £120,000. In 2006, the threshold was further raised to £125,000.


In addition to SDLT on the purchase price for land, SDLT is also charged when a lease is granted. Any premium for the grant is charged to SDLT at the same rates as for the purchase price for a sale of land; SDLT is also charged on the rent payable under the lease, at the rate of 1% of the (discounted) net present value of rent passing under the whole term of the lease. Previously, stamp duty was charged at rate of up to 24% of the annual rent. The amount of SDLT due on the grant of a typical commercial lease generally amounts to a substantial increase from the amount of stamp duty that would have been due previously. This article or section should include material from Tenancy agreement A lease is a contract conveying from one person (the lessor) to another person (the lessee) the right to use and control some article of property for a specified period of time (the term), without conveying ownership, in exchange for... Look up premium in Wiktionary, the free dictionary A Premium may refer to: Premium rate telephone number, the UK Premium Bond Premium outlet Risk premium, in finance, the monetary difference between the guaranteed return and the possible return on an investment This is a disambiguation page — a navigational aid which... It has been suggested that this article or section be merged with rental agreement. ... Net present value (NPV) is a standard method for financial evaluation of long-term projects. ...


SDLT is also charged on certain transactions involving the transfer of land involving partnerships (transfers of land from or to the partners, or changes in the partners' partnership interests where the partnership owns land). A partner is: a domestic partner. ...


Whether or not tax is payable Her Majesty's Customs and Revenue require a Return to be received by them within four weeks of the transaction completing failing which they have power to levy a fine on the tax payer - the fine is not for failure to pay the tax but for failure to make the return. When a return is accepted by HMRC they provide a Certificate without which it is impossible to register a change in the land ownership.


External links

  • Inland Revenue Stamp Taxes

United States

Although the federal government formerly imposed various documentary stamp taxes on deeds, notes and other transactional documents, in modern times such taxes are only imposed by states. Typically when real estate is transferred or sold, a real estate transfer tax will be collected at the time of registration of the deed in the public records. In addition, many states impose a tax on mortgages or other instruments securing loans against real property. This tax, known variously as a mortgage tax, intangibles tax, or documentary stamp tax, is also usually collected at the time of registration of the mortgage or deed of trust with the recording authority. Federal courts Supreme Court Chief Justice Associate Justices Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures State Courts Counties, Cities, and Towns Other countries â€¢ Politics Portal      A state of the United States is any one of the fifty subnational entities referred to... A transfer tax is a direct tax that is paid when title to property is transferred. ... A mortgage is a method of using property (real or personal) as security for the payment of a debt. ...


  Results from FactBites:
 
Stamp duty - Wikipedia, the free encyclopedia (1569 words)
Stamp duty was first introduced in the UK in 1694, during the reign of William and Mary under "An act for granting to Their Majesties several duties on Vellum, Parchment and Paper for 4 years, towards carrying on the war against France".
Stamp duty remains in force for shares and securities that are held in certificated form which can only be transferred by using a physical stock transfer form, and runs in parallel to SDRT on agreements to transfer shares.
Stamp duty land tax (SDLT) is a new tax in land transactions that was introduced by Finance Act 2003 and largely replaces stamp duty with effect from 1 December 2003.
Stamp Act - Wikipedia, the free encyclopedia (959 words)
Stamp Duty was first introduced in England in 1694 following the Dutch model as An act for granting to Their Majesties several duties on Vellum, Parchment and Paper for 4 years, towards carrying on the war against France.
Stamp Duties in Ireland were equalised with those in the rest of the United Kingdom.
A public display of Stamp Office artefacts and records was held at the Courtauld Institute in 1994 to commemorate the Three hundredth anniversary of the introduction of UK Stamp Duty.
  More results at FactBites »

 
 

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