This article explores Stamp Duty calculation within Insight.
Stamp Duty can now be calculated with Insight Legal Software. This can either be done as part of the Purchase Workflow or have the details entered directly into the User-Defined Data tab.
There are three different rates for Stamp Duty:
- First Time Buyer
- Standard Rate (selling current home and purchasing a new one)
- Owns multiple homes
Using one of these three rates, when applied to the Property Value, the system will calculate the Effective Tax Rate and the Stamp Duty.
Once all the inputs (First Time Buyer Boolean, Owns Multiple Homes Boolean and Property Value) have been activated, the outputs (Effective Tax Rate and the Stamp Duty) will be displayed.
To calculate each of the three Stamp Duty rates, different combinations using the First Time Buyer Boolean and Owns Multiple Homes Boolean need to be used. They are:
- First Time Buyer (First Time Buyer – True, Owns Multiple Homes – False).
- Standard Rate (First Time Buyer – False, Owns Multiple Homes – False).
- Owns Multiple Homes (First Time Buyer – False, Owns Multiple Homes – True).
For a Boolean to be True the Boolean needs to be ticked. For a Boolean to be False the Boolean needs to be blank. If a Boolean is Null the calculation will not work as the field has not been activated.
Once the Booleans have been correctly activated and a Property Value entered, the Effective Tax Rate and the Stamp Duty will automatically calculate.
Once the Booleans have been correctly activated and a Property Value entered, the Effective Tax Rate and the Stamp Duty will automatically calculate.
As all the relevant information has been entered and the task has been saved, the Effective Tax Rate and the Stamp Duty will be output.
Any changes to the details can be amended within the User Defended Data tab. For example, if the
Property Value changed or was entered incorrectly, when the value has been amended and saved
the Effective Tax Rate and the Stamp Duty will recalculate.