When was stamp duty introduced

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Friend Name. Friend Email. Subscribe to comments. Share this article. Previous Next. Join the conversation Sign in Be the first to comment please use the comment box below. Please login to comment. Thank you for your input Please confirm you wish to report this comment as abuse. Report Comment. The new tax was raised against official documents written on vellum calf skin , parchment other hides and paper, which were required to be presented for stamping and payment of the appropriate duty levied against them.

The original intention was for the tax to be a temporary measure to raise finances for the war against France. However, it proved so successful as a means of raising revenue for the government that it still endures today. The tax applied in to property transactions as well as other documents.

The first rates were fixed at five shillings for conveyances and forty shillings to grants of land or leases. Officers of the Crown were appointed to oversee the physical stamping of documents at the point of payment of the duty.

A durable impression was made to the document to safeguard against forgery and counterfeiting. Originally the tax was a fixed rate duty and it did not matter as to the value of the property transacted as to the amount that was payable. In much the same way as now, a failure to comply with stamping obligations could result in a fine which was usually considerably greater than the original tax due, to encourage compliance. Over the years stamp duty was applied not only to land but to such diverse things as cheques, hair powder, dice and playing cards.

The old paper based system had its drawbacks, not least in terms of administrative expense and because the onus was on the tax payer to volunteer the instrument to be stamped, leading to increasingly clever schemes of avoidance. Estate agents reported a surge of interest in March as buyers and sellers rushed to complete property deals before the scheme was initially due to end.

Demand continued when the holiday was extended until June and then again until September. However, there are many other reasons why house prices have been surging. The policy is designed to help more first-time buyers secure a home. There were also similar tax cuts for house buyers in Scotland and Wales.

It later extended the holiday until 30 June, with rates reverting back to normal from 1 July. The current rates of Land Transaction Tax are:. The Welsh government runs various schemes to help people to buy a home.