okay in this video i want to give a basic sort of a maths lesson i was
showing some of my staff here this morning some basic maths
because the calculation of that on a new build property is important and calculation because
it triggers or it will determine what you pay stamp duty on so to put or make it clear
you pay stamp duty under that exclusive price of a new new build property so i i took the girls here
through a very basic calculation of how to ascertain how much fat yeah and how much
damage needs to be paid on new house so i'm gonna just go through it here because i had
still have the figures on the blackboard or on the whiteboard and i'm going to just zoom in here now
okay i've zoomed in and i'm just going to make it very very simple hopefully uh it'll be clear
when i've done this if you if i'm charging somebody 100 euros plus fast for something
then it's very straightforward if the vat for example is a professional service fee that is 23
so if i charge 100 quid say let's just say for the sake of argument 100 euros for a
consultation i'm going to charge 23 fat on top of that then it's 100 plus 23 percent
of 100 that gives you 123. so the net figure is 100 euros the vat is 23 euros because it's a 23
percent fat rate and the total then the gross is 123. but what if a new house which you build
has the vat included in the price which it will have because it will be set out in the
transfer that the property is for example 250 000 if that's the case then the 250 000
includes the vat and the vat on a construction project is 13 and a half percent or the build
of a new property is 13 and a half percent that's the construction of that rate
so we're not adding on 13 and a half percent to this we have to figure out how much the net
price cost of the property is so the 250 grand includes that at 13 and a half percent
what we do is we divide 250 grand by 113.5 and that gives and that gives us 2202.64
you multiply that by 100 it gives you the net cost of the property so the net cost of the property is
220 264 then the vat on top of that is 13 and a half percent as you can see here that's 29735
and the net plus the vat gives you your gross price of the property 250 grand that's two four
nine nine nine nine but it rounds up to 250 000 so we know that the vat exclusive price of that
particular property which has a new price of 250 grand we know the net price is 220 264. therefore
we pay stamp duty under 220 264 so one percent of 220 264 gives you a stamp duty figure of two
two zero three in other words you rounded up so one percent of the vat is uh the relevant
figure for stamp duty i hope that's clear to you so as i say the final figure the final figure for
the property so the final figure for the property the transfer is going to include that at 13 and a
half percent but if you say we're not expected or you're not expected if you're buying a new
property to pay stamp duty on top of that so what you do is you take this that off so you take the
250 000 you divide it by 113 and a half multiply it by 100 that gives you the net building cost
then you pay one percent stamp duty calculated on that net building cost which as i say is not
one percent of 250 grand it's one percent of two to zero two six four hope this is helpful for you
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