Stamp duty can this be paid after compeltion

dkny_2

Solictor has made a gross error :mad: , are we still able to complete without the solictor recieveing payment of stamp duty? We complete on the 12th Jan..

Also, when in the day does completion actually happen?

As always Thanks in advance

silvercar

Stamp duty has to be paid within 28 days of completion. So you can leave it till well after you've moved in. Most solicitor's do like to tie up lose ends and close your file soon after completion.

Mikeyorks

You've got 30 days to get the paperwork / money in if your purchase attracts SDLT (as quote from HMRC) :-

A land transaction return should be delivered within 30 days of the effective date of the transaction (the filing date). The effective date is normally the completion date of the transaction, whether or not a document shows this.

There's been other threads on 'completion times' ... but it seems to vary between 1000ish .. to early afternoon.

dkny_2

The solictor has not provided me with a completion statement but stil wants me to transfer the money to there account ready for friday for completion,

they currently hold our deposit and legal fees but on top of this he also
wants stamp duty to complete, I have mentioned that i can pay next tuesday but this has fallen on deaf ears is there any way around this?

Thanks

silvercar

you can always tell the solicitor you will do the stamp duty submission yourself.

lotto-dreamer

Solicitors usually submit stamp duty fee to Inland Revenue on day of completion to avoid penalties. When the stamp duty certificate is duly received back from Inland Revenue it has to be sent to Land Registry. Without the certificate, the Land Registry will not register the property in your name.

Before completion solicitors usually require payment of all monies to complete the purchase, including the stamp duty. You will need to discuss with your solicitors to see if they will allow you to pay it a few days later - this will depend on their practice and possible Law Society Rules.

Time of completion varies - money has to be passed up the chain as each purchase completes. If it is a short chain you could be lucky and complete by mid to late morning but if a longer chain below you, you could be waiting into later in the afternoon

Best of luck! :beer:

dkny_2

silvercar wrote:

you can always tell the solicitor you will do the stamp duty submission yourself.

Will the solictor allow me to do this, As they seem to want to complete the stamp duty transaction themselves...

lotto-dreamer

Quote:

Quote:
Originally Posted by silvercar
you can always tell the solicitor you will do the stamp duty submission yourself.


Will the solictor allow me to do this, As they seem to want to complete the stamp duty transaction themselves...

If you are purchasing with a mortgage your solicitor is required to hold all the funds at completion - including stamp duty - as per this extract from the CML Lenders Handbook below :

"10.3 You are only authorised to release the loan when you hold sufficient funds to complete the purchase of the property and pay all stamp duties and registration fees to perfect the security as a first legal mortgage or, if you do not have them, you accept responsibility to pay them yourself. You must hold the loan on trust for us until completion. If completion is delayed, you must return it to us when and how we tell you (see part 2)."

(these are the instructions to solicitors but there are some lenders who do not subscribe to the CML (council of mortgage lenders) - it really does depend on your circumstances so you must speak to your solicitor

silvercar

Plenty people on here have done their own stamp duty forms, some online solicitors quote separately for doing this.

lotto-dreamer

Plenty people on here have done their own stamp duty forms, some online solicitors quote separately for doing this.

You can certainly fill in the forms yourself to save money (tedious but cost effective if you have all info to hand) as solicitors do often charge extra for this (up to £50 plus VAT!!!) just to fill in a form.

However, if the OP is buying with a mortgage the solicitor is required to undertake not to pay over the purchase monies on completion unless he has sufficient funds to complete the purchase which includes registering it at the Land Registry and paying the stamp duty.

silvercar

As a case in point, I know the buyers of one of the houses, that was in my chain when I moved in July, had a retention on their sale of £1,200. This money was part of their stamp duty money as their solicitor was very anxious that it be replaced a couple weeks after completion. I know of friends who have only paid the stamp duty after completion.

(Maybe technically the solicitor's fees could be earmarked for the stamp duty at completion?)

Think we'll have to agree to disagree on this one.