What does stamp duty mean?

Stamp duty is a type of tax that is levied on certain financial transactions, particularly those related to the transfer of assets such as real estate, stocks, and other securities. The tax is typically calculated as a percentage of the value of the transaction and is paid by the buyer or seller, depending on the specific circumstances and the jurisdiction in which the transaction takes place. In the context of real estate, stamp duty is often assessed when a property is purchased or transferred from one party to another. The amount of stamp duty owed is typically based on the purchase price or the market value of the property and can vary widely depending on the location and the specific regulations in place. In some cases, stamp duty may also be applicable to other real estate-related transactions, such as the granting of a lease or the transfer of a mortgage. In the case of stocks and securities, stamp duty may be assessed on the purchase or transfer of these financial instruments. Again, the specific rules and rates for stamp duty can vary depending on the jurisdiction, and in some cases, certain types of transactions may be exempt from the tax. Overall, stamp duty is an important source of revenue for many governments and plays a significant role in the regulation of financial markets and the real estate industry. It is important for individuals and businesses to be aware of the potential impact of stamp duty on their financial transactions and to understand the specific rules and regulations that apply in their particular circumstances.