Forum menu
Stamp Duty
 

[Closed] Stamp Duty

Posts: 10630
Full Member
Topic starter
 

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?


 
Posted : 01/08/2014 11:25 am
Posts: 1
Free Member
 

why would you want to do that?


 
Posted : 01/08/2014 11:27 am
Posts: 4403
Free Member
 

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.


 
Posted : 01/08/2014 11:28 am
Posts: 6
Free Member
 

[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.


 
Posted : 01/08/2014 11:36 am
Posts: 0
 

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.


 
Posted : 01/08/2014 11:45 am
Posts: 10630
Full Member
Topic starter
 

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.


 
Posted : 01/08/2014 1:28 pm
Posts: 3043
Free Member
 

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.


 
Posted : 01/08/2014 3:29 pm
Posts: 6
Free Member
 

@Daffy - fair enough, I'm pretty rusty. 🙂


 
Posted : 01/08/2014 3:30 pm
Posts: 4041
Full Member
 

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.


 
Posted : 01/08/2014 3:44 pm
Posts: 10630
Full Member
Topic starter
 

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.


 
Posted : 01/08/2014 5:02 pm
Posts: 39694
Free Member
 

Looks like youll need to find a new solicitor then.

Not sure youll find one willing to do it though.


 
Posted : 01/08/2014 5:10 pm
Posts: 3900
Free Member
 

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...


 
Posted : 01/08/2014 8:20 pm
Posts: 10630
Full Member
Topic starter
 

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. 🙄


 
Posted : 01/08/2014 8:30 pm
Posts: 0
Free Member
 

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.


 
Posted : 01/08/2014 10:35 pm
Posts: 0
Free Member
 

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.


 
Posted : 02/08/2014 11:08 am