Business stamp duty calculator for North South Wales

Business Stamp Duty- Meaning and Applicability

The business stamp duty is to be paid by the businessmen purchasing other businesses. The liability to pay the duty arises when the business is purchased or transferred. This duty which is to be calculated on the assessable value must be paid within three months from the date the liability of paying the duty arises. When the property is purchased ‘off the plan’, it is to be paid within earlier of the following:

· The Completion of the agreement, if any; or

· The whole assignment or a part of the purchaser’s interest as stated in the agreement; or

· Within 12 months of the date of the agreement

Business stamp duty is calculated by business stamp duty calculator which is readily available on government websites.

According to the recent amendments, the stamp duty shall be eliminated after 18th June 2015. Any agreements prior to that shall be put into effected but any new agreements shall not be liable to pay the stamp duty. But until then, the duty shall be paid on all the business transfers till the Statutes Amendment and Repeal (Budget) Bill 2015 is passed. Meanwhile, The State will pay off the duties on behalf of the assesse in the form of ex gratia relief. Any changes in the State budget can be found in the Information Circular 75.

The Stamp duty will however, apply on the transfer of land and motor vehicles which is sold as a part of sale of business.

The business stamp duty is charged on higher of the following:

1.) The market value; or

2.) Consideration,

The following cases attract the business stamp duty:

o The transfer of a business;

o The transfer business interest;

o The transfer of a partnership firm;

o The transfer of partnership interest in the partnership firm;

o An admission or retirement of a partner in a partnership firm; or

o A dissolution of a partnership firm

The sale of property also includes the sale of goodwill, stock, a motor vehicle and all such assets which form part of the consideration. The written agreement should contain all the terms and conditions and it should be duly signed and stamped by the concerned parties. It is the purchaser who is liable to pay the tax and not the seller.

Where there is no written agreement, a statement and statutory declaration must be filed which shall be in accordance to the section 71E of the Stamp Duties Act 1923. It is to be completed by the purchaser. It should mention all the relevant details of the purchase transaction.

The business stamp duty calculator and its working

The Business stamp duty calculator calculates the tax on the base of the value of business. The value of business is to be entered; rest the calculator will automatically calculate the taxes to be paid on the transfer of business.