Stamp Duty Savings Scheme advice needed

mynameisdave

julie11 wrote: »

I can confirm that we will provide assistance to you in the unlikely
event that HM Revenue & Customs opens an enquiry during the 9 month window after completion takes place.

And after the 9 months window? Your on your own having paid their fee and still needing to pay HMRC.

dpooleco

I did it !

After reading all this I feel foolish however I will share.

I was advised by my Solicitors that if the scheme fails, I will receive the full refund – so therefore what do I have to lose… Well – I thought what have I got to lose.

House bought in October 09 – Inland Revenue Investigated June 10 – (thus 9 months + 30 SDLT payment window gone). I started to worry that the schemers would go under and I would lose my 50% fee.

I received a letter from the schemers and had to sign an indemnity letter in order to receive my funds back – Of course I did this I just wanted my funds back.

Thankfully …. I received the funds !!!! I had also kept safe my 50% SDLT share, such that if the scheme failed I could pay up – as was also advised at the time.

I sent a cheque to the investigating SDLT party and he called me to clear up a few things – nothing major just regarding Reference number etc. I was then informed that I would be liable for the interest from the house purchase date + 30 days grace until he received the cheque – this amounts to interest for over 500 days and well over a thousand pounds.

This is my case – now my question is : - after being advised that I have nothing to lose and my solicitors must under the law, be acting in my best interests – when I was told I have nothing to lose – clearly this is wrong – there is the interest for late payment to lose !!
Therefore have I been given incorrect professional advice?
Please advise.

jimjames

It sounds like a case to refer your solicitor to the Law Society as a complaint on their professional standards if they have misled you like this. Do you have all the info in writing?

In reference to the T&Cs, "the unlikely event that HMRC investigate in 9 months". It is indeed unlikely that HMRC will investigate inside 9 months, far more likely that they will investigate after that time!

FTBFun

I suspect the solicitor got commission from the third party for referring you also. I'm not a solicitor so can't really comment, but under the professional practices and ethics I have to follow as a tax adviser one has to at least disclose commission received for offering advice to a client.

I've found this from the SRA:

http://www.sra.org.uk/rule2/

2.06 Commissions

If you are a recognised body, a manager of a recognised body or a recognised sole practitioner, you must ensure that your firm pays to your client commission received over £20 unless the client, having been told the amount, or if the precise amount is not known, an approximate amount or how the amount is to be calculated, has agreed that your firm may keep it.

Did this happen? It may be buried in the T&Cs somewhere.

dpooleco

I will approach the next step after I have the letter from the IR.

I will also ask the solicitors about rule 2.

dpooleco

The IR have asked for the full SDLT - Which I paid. AND the interest incurred at "their" rate since the house purchase !!!!
I am now asking the solicitors why I was not advised about this situation.

FTBFun

dpooleco wrote: »

The IR have asked for the full SDLT - Which I paid. AND the interest incurred at "their" rate since the house purchase !!!!
I am now asking the solicitors why I was not advised about this situation.

HMRC are well within their rights to charge interest I'm afraid.

Let us know what the solicitors [STRIKE]excuse[/STRIKE] response is.

Trollfever

FTBFun wrote: »

HMRC are well within their rights to charge interest I'm afraid.

Let us know what the solicitors [STRIKE]excuse[/STRIKE] response is.

Another avenue to explore:

http://www.legalombudsman.org.uk/