This article explores Stamp Duty calculation within Insight Legal.
Stamp Duty can now be calculated with Insight Legal Software. This can either be done as part of the Commercial Purchase Workflow or have the details entered directly into the User Defined Data tab.
There are two ways to calculate Stamp Duty:
- Commercial Stamp Duty Freehold
- Commercial Stamp Duty Leasehold
These two new calculations can be found in a drop-down menu accompanying the Residential SDLT calculation within the definition screen for the Run Calculation action. Once a calculation is selected, parameters will appear below with UDFs that are required for each input and output.
Please refer to our User Defined Fields and how to use them guide for further details on how to set up these UDFs. |
Freehold
If you select Commercial Stamp Duty Freehold from the dropdown, the action will be populated with two fields that must be populated with selected User Defined Fields from the section below. Of the two fields, one is an input of the property value (Which must be saved BEFORE running the calculation), the other shall be the output of the Calculated Freehold Stamp Duty Land Tax.
The Freehold calculation will take the property’s value, determine which threshold it falls under, apply the related percentage to the value, and return the SDLT.
Leasehold
The other available option is Commercial Stamp Duty Leasehold. This selection will populate the action with ten User Defined Fields which will all need to be populated before the action can run.
The required fields are:
- The completion/transaction date, which is the effective date of the transactions.
- The start date of the lease.
- The end date of the lease.
- The property value.
- The yearly rent of the first five years (all must be populated but only filled in if they are applicable, e.g. if the lease is only for four years, then only the first four fields should be filled in).
- The calculated leasehold stamp duty land tax.
The first nine fields will be inputs, and the tenth shall be an output which will calculate the amount of Stamp Duty. All values must be saved before running the calculation.
The Leasehold calculation is slightly more complicated as you have to pay SDLT on both the purchase price (same as Freehold) and the Net Present Value these two values are then added together and returned.