Quick question about stamp duty

HollaHolla84

I had a quick search through the forum and main site but couldn't find an answer. The direct gov website just sends me in circles. Basically all I want to know is how you pay stamp duty. We are buying a house for 128k they really wont budge any lower which is annoying. Anyway can they add it to the mortgage? Pay monthly? or do you have to pay in full on completion? Thanks in advance

dougs

you have to pay it in full on completion. Your solicitor will send you a completion statement showing the amount of funds he/she needs to complete the purchase on your behalf, and the stamp duty amount will be part of that.
You can't add it on to your mortgage so you need to have that money available for completion day.

HollaHolla84

Thanks for that. Thats all I needed to know.

downs523

just pay them the 3 grand difference seperatly and ask them to reduce the list rice to 125000

Doozergirl

downs523 wrote: »

just pay them the 3 grand difference seperatly and ask them to reduce the list rice to 125000

It's not exactly a thing that you "just" do, is it, Tax Evasion involving people you don't even know?

HollaHolla84

Yeh I would love to offer them 3 grand cash. Its a shame I don't have 3 grand spare at the moment. Although I'm not going to do it but surely if you could agree with the seller we could increase the offer by the 1% and ask them to pay stamp duty. They still get the same money wouldn't they.

gazpacho_uk

I think you get 30 days from the day of completion to pay the stamp duty (thats what our solicitor has advised ..... we move on 29th AUg)

budget_counsellor_shaz

gazpacho_uk wrote: »

I think you get 30 days from the day of completion to pay the stamp duty (thats what our solicitor has advised ..... we move on 29th AUg)

Yes you are correct gazpacho more info here:-
http://www.hmrc.gov.uk/so/sd/sdinterest-penalties.htm

'There is a 30 day time limit for getting documents stamped. If you do not present your document to the Stamp Office with the correct amount of duty in the time limit allowed, you can expect to pay a penalty and interest charges.
Penalties apply when you do not present your document on time.
Interest is charged on duty that is paid late.'

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4015918

'As the buyer of the property, you are responsible for completing the land transaction return and paying the SDLT.
However, in practice, your solicitor or licensed conveyancer will usually handle this for you and send it to HMRC on your behalf.
You should check that all the information on the form is correct and complete before signing the declaration.'

Or if like us you completed your own coveyancing you will need this information:-

http://www.hmrc.gov.uk/howtopay/sdlt.htm


Shaz

Chris2685

They sound like pretty big idiots if they're not willing to lower in 3k to avoid you having to pay stamp duty if you ask me! Surely anyone marketing a property at around stamp duty threshold levels would usually place their price slightly below the level?
Just tell them you're not willing to buy and see what they say, although it may not be worth the risk to you!

chewmylegoff

HollaHolla84 wrote: »

I had a quick search through the forum and main site but couldn't find an answer. The direct gov website just sends me in circles. Basically all I want to know is how you pay stamp duty. We are buying a house for 128k they really wont budge any lower which is annoying. Anyway can they add it to the mortgage? Pay monthly? or do you have to pay in full on completion? Thanks in advance

you could offer £124,999 for the property and then make an additional offer for chattels (i.e. removable items left in the property by the seller - free standing kitchen appliances, curtains etc) on top of that, with the money to go through on completion day.

chattels do not incur stamp duty, therefore there would be no stamp duty payable in this situation. however transactions structured like this on the stamp duty thresholds are more likely to be investigated by the revenue, so any offer for chattels must list what is being purchased and the value must be set at the market value of the items, otherwise you can get done for tax evasion.

in short if they're leaving all of their free standing kitchen appliances, curtains and carpets etc then there might be a deal to be done here.

however note that anything that is fitted (e.g. a fitted oven that is an integral part of a unit, the bath, cupboards) is not a chattel.

Richard_Webster

As the buyer of the property, you are responsible for completing the land transaction return and paying the SDLT.
However, in practice, your solicitor or licensed conveyancer will usually handle this for you and send it to HMRC on your behalf.
You should check that all the information on the form is correct and complete before signing the declaration.'

If a mortgage is involved a solicitor cannot use the mortgage advance money to complete the purchase unless he is also able to pay the Stamp Duty Land Tax (SDLT). That is a lender requirement because thy want to make sure that their mortgage is registered at the Land Registry and this cannot happen unless the SDLT has been paid. This means that your solicitor will have to have the money from you before completion without fail, otherwise he won't complete. He is not going to take on personal liability to find the money, so I'm afraid you cannot wait for nearly 30 days to pay it if you are getting a mortgage