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According the HMRC, I can pay the SDLT later, but will incur a fine by doing so. My solicitor wants the funds up front, I am willing to incur the fine and pay later. Is there any way of just paying the SDLT yourself, or would that mean doing all of your own conveyancing?
why would you want to do that?
I think you can just pay it. The solicitor will be keen to pay it all at once to ensure that nothing's left that may cause an unnecessary concern to other parties.
IMO just pay it now then its done.
[url= http://www.landregistry.gov.uk/professional/law-and-practice/stamp-duty-land-tax ]You need to certify to the Land Registry that you have paid the SDLT before the Land Registry will register your purchase[/url].
Basically that means that if you are borrowing from a bank you will need to pay it right away as the bank will require complete registration at the time of purchase to make sure their security is registered properly.
We moved house recently and I seem to recall you have 28 days from the time of purchase to pay, without incurring a fine from HMRC.
After that point you get a fine, but, you may run into difficulties with your mortgage lender if you pay after that period. I remember the financial advisor saying the interest rate used to calculate the fine wasn't too bad.
BD, that's not really what it says. It states that you must file the SDLT upon completion, but the SDLT return and the payment of the tax are two different things.
not really relevant but I seem to recall a solicitor was struck off for collecting the sdlt from the client & not paying the tax, ie, running off with it. The client was liable for the debt - the feature was on you & yours, R4, about 2 years ago.
So why wouldn't you want to just pay it? Please don't say you've stretched yourselves to the point that you can't afford the stamp duty.
By not paying it immediately, I can pump more in the deposit and move into a different LTV band. Doing so will save myself circa £250 per month in interest. My January bonus + the remaining from the LTV switch will cover the SDLT within 6 months.
Looks like youll need to find a new solicitor then.
Not sure youll find one willing to do it though.
So why wouldn't you want to just pay it? Please don't say you've stretched yourselves to the point that you can't afford the stamp duty.
Looks like you're right...
Looks like you're right...
Yup, if you're short sighted and therefore struggling to see clearly from your pillar of superiority, that's exactly what it looks like. 🙄
If i did that for a client who was purchasing a property with a mortgage then i would be acting in breach of my instructions from the mortage company - if there was no mortgage then the transaction can be completed the return submitted and registration completed - if the client has not paid his tax or put me in funds to do so then on his head be it - HMRC will sue for the tax after a few months. This happened to a client of mine a little while ago - it was very expensive.
Our solicitor was just about prepared to wait a couple of days after completion, but no more. In the end we didn't need to. I don't think any solicitor would be prepared to let you go beyond the 28 day period.