When do you pay stamp duty?

Chop

Hello,

This may seem like a really stupid question but.....when do you pay stamp duty on a property purchase?

Our completion date for our £170k house was 30th June and, as yet, nobody has asked us to pay the £1700 stamp duty! We appointed our solicitor as our 'land tax agent' and it certainly wasn't included in their bill (which was £900).

We don't really want to ask anyone 'official' as all the time the money is sitting in our account we're making interest on it.

The only thing I can think of that may have affected it is this: When the property was on the market the seller was offering to pay the stamp duty - however, we negotiated that they would pay our 5% deposit instead of the stamp duty, and we would pay that. I'm now wondering if they have ended up paying the stamp duty too....the seller was very scatty and may not have realised!

Are we being stupid not checking this out or should we stay quiet and leave the money in our account gathering interest?

Would appreciate any advice or opinions.

ginandtonic1988

You pay stamp duty at £125,000.001, If you live in a exempt area then you would not have to pay, you can check this online on the Inland Revenue stamp tax website here at http://www.hmrc.gov.uk/so/pcode_search.htm.

I work for a conveyancer and when I complete a matter the amount charged for stamp duty is included in your final completion statment, I then have to go on line to submit my Land Transaction Return and then pay the amount by bacs.

Your solicitor is also not going to be able to register the property in your name either if stampduty is due because when you pay the stampduty you then receive a certificate two weeks afterwards, this has to accompany your registration application at the Land Registry. You cannot register your property without the Land Transaction Return Certificate.

Good Luck

Bossyboots

Is it not also the case that the return has to be done within 28 days?

Ian_W

And that your £1700 will have be earning interest for quite a long time at present rates to pay the penalty [is it a £100 fixed one like SA tax returns?] for late filing?
I really would contact your solicitor and find out why it's not been paid, there may be a good reason, or it may be an oversight, but better to sort it out IMO.

ginandtonic1988

The above are correct you only have 28 days in which to file and you do get a £100 penalty for late filing. The more worrying matter is that your property will not have been registered in your name if your stamp duty has not been paid and also if you wish to remortgage or sell the property you will not be able to because the property won't have been registered. I think you should contact your solicitor urgently to discuss.

Ian_W

Chop,
It might be worth looking at this thread:

http://forums.moneysavingexpert.com/forumdisplay.html?f=16

They've just received a penalty notice from HMRC even though they paid their solicitor the Stamp Duty, as you haven't I don't think it will be quite as easy to blame the solicitor for it not being paid.