stamp duty

lotto-dreamer

pk2007 is correct - it is 4% over £500,000.

OP would have paid £25000 sdlt on purchase price of £625000. Solicitors would have calculated on correct percentage (hopefully!)

but, by sound of penalty in this case - it is more likely the date is the source of mix up. If payment was calculated incorrectly, I'm sure the IR letter would have pointed that out in no uncertain terms.

Melissa177

As an aside, I think Stamp Duty is the most unfair tax. Not only is it extortionate, but it isn't progressive either - someone buying a house for 499,999 would pay £5K stamp duty; someone buying a house for 501,000 would pay £20K stamp duty!

jewel22_2

pk2007 wrote: »

hi i thought the stamp duty was 4% above £500,000. is that figure correct at 3%?

sorry think i added an extra 0 it was £625500 sale price
so 3% is correct. not so worried now as its all gotta be correct the only thing is the date as i seem to be charged a year in interest too.
thank you all

vodkagirl001

jewel22 wrote: »

sorry think i added an extra 0 it was £625500 sale price
so 3% is correct. not so worried now as its all gotta be correct the only thing is the date as i seem to be charged a year in interest too.
thank you all

£625,500 is still more than £500,000

Bossyboots

jewel22 wrote: »

sorry think i added an extra 0 it was £625500 sale price
so 3% is correct. not so worried now as its all gotta be correct the only thing is the date as i seem to be charged a year in interest too.
thank you all

Am a bit confused because you have again put a figure above £500,000 which would be 4% stamp duty as mentioned above

If you take a 0 off the end, you don't even reach the level for 1% stamp duty.

jewel22_2

vodkagirl001 wrote: »

£625,500 is still more than £500,000

really sorry to confuse people i bought for £262,500 all these typos i have been doing , must be the shock of the stamp duty penalty got me in a bother...

jewel22_2

my sol got back to me by e mail 9am this morning telling me it was a glitch on the inland revenue scanners and they read it as 2006 not 2007 hence the penalty and fine, she believes her hand writting was to blame, she has sent off the necessary form to correct this...so relieved
thanks to all who tried to reasure me

ffacoffipawb

Melissa177 wrote: »

As an aside, I think Stamp Duty is the most unfair tax. Not only is it extortionate, but it isn't progressive either - someone buying a house for 499,999 would pay £5K stamp duty; someone buying a house for 501,000 would pay £20K stamp duty!

Someone buying a house for £499,999 would pay £15K stamp duty, not £5k as it is 3% of value at that point.

Richard_Webster

my sol got back to me by e mail 9am this morning telling me it was a glitch on the inland revenue scanners and they read it as 2006 not 2007 hence the penalty and fine, she believes her hand writting was to blame, she has sent off the necessary form to correct this...so relieved
thanks to all who tried to reasure me

I read through this thread waiting for the answer and it is I'm afraid quite typical of HMRC - all about scanners not working and forms getting lost etc.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee-paying clients

Melissa177

ffacoffipawb wrote: »

Someone buying a house for £499,999 would pay £15K stamp duty, not £5k as it is 3% of value at that point.

Sorry - you're right, it's 3% isn't it over £250K.

Eek!