For the existence of public services such as the NHS, the army, social services and the police force, we have to contribute to the government’s funds. The vast majority of this revenue stems from income tax. Other sources include National Insurance, value-added tax on goods and services and corporation tax. One of the most significant revenue streams is from stamp duty land tax. The levels of funding derived from this tax depending on how good the housing market was at the time.
The tax itself comes from an old law. It is based on the use of postage within conveyancers and law firms. As with all mortgage lending or large loans, you do not receive the money yourself. The lender sends it straight to your solicitor. They then pass this on to the person who is selling you the land or property. This is done so as to avoid fraudulent behaviour.
Not everyone making a purchase of land or property has to pay this tax. Successive governments have worked in schemes of relief and exemptions to those who would be most strongly affected by it. Charities and first-time buyers, for example, do not have to pay stamp duty land tax. This is not always clear, and sometimes a Stamp Duty Refund can be found. The best way to do this is to use www.sentientsdlt.co.uk. They can give advice and guidance on this taxation subject.