VAT on Solicitors Fees

kyleheath

I have just received a proposed cost for the sale of my current home £116750, and purchase of new home £192500 from my solicitor. They have charged £2941 + VAT for this including stamp duty and all searches, my question here is now I have picked my jaw up off the floor, can they charge VAT on searches and Stamp Duty?

Isnt Stamp Duty a tax already, I wouldnt have thought they could tax a tax? Can anyone help on this before I call my solicitor?

Cheers

Kyle

Victoria_Falls

This is my understanding of it (may be right / wrong) :

You pay VAT on searches etc and not stamp duty:- see example below

Solicitors £625
VAT: £109
Disbursements - Land Registry £150
Disbursements - Local Authority Search £160

SUB TOTAL ( including VAT): £1,044

Stamp Duty @ 1% £1,750

GRAND TOTAL (including VAT) : £2,794


The stamp duty is not subject to VAT even though the Grand Total says (including Vat) this is the total cost.

There is more info on https://www.direct.gov.uk

Hope this helps

kyleheath

I spoke to the senior partner this morning and you are correct, you do not pay VAT on Stamp Duty. I thought this would be the case as its a direct tax from the Gov and the solicitor would have no right to charge VAT on this.

It should be all sorted now as the solicitors are my customer as so I used them to return business to them, its just annoying when you see these types of mistakes and if you are not savvy you may assume they are right and sign on the line and bingo you owe money you dont have to pay.

Considering they deal in law you would think they would proof read what they send out as binding documents!