Stung by stamp duty avoidance scheme help!!!!

ecswtrav

Hi, I'm hoping somebody can help me out. Back in December time last yr we began the process of purchasing a house requiring stamp duty of 8700. We didn’t have this money at the time and found a local company who specialised in a Stamp Duty avoidance scheme. Apparently 10 yrs of no problems or comebacks for clients.
Part of their service included specifying the exact solicitor we had to use and within 30days of completion we would receive half the funds back – we paid 8700 upfront but because we were buying a rundown house that hadn’t been touched for 60yrs so we needed half the funds back for this.

Anyway, we completed on Feb 8th this year. A month went by and still no refund, two months and still no refund. We chased up the company and they referred us to the solicitor. The solicitor indicated that there was a delay because the property was not first registered with it being occupied by an elderly person for the last 60yrs or so. Apparently the main hold up was this issue.

On March 25thwe received a HMRC disclosure form which we were instructed to fill in and return. The solicitor knew nothing about this form but advised us to fill it in if the other company suggested doing so. We did this and returned the form to HMRC on their advice it was needed.

By the end of April we received half the money back as promised released by the solicitor.

Just a few days ago we received a letter from the company who carried out the SDLT indicating that due to the 2013 budget and an announcement that retrospective changes were being implemented, all SDLT schemes from Feb 2012 are invalid and we now have to pay the original sum of 8700 to HMRC plus any interest that has accrued since 30 days after the completion date.

My issue is that the company were well aware that the scheme was doomed to failure after the Budget announcement 2013 which took place on the 20th March. Yet instead of contacting me to explain and meet some form of a compromise they continued to process things – such as sending me a letter out on the 25th March a few days after the announcement.
This company also have 4200 of my money of service that hasn’t worked. I also question the solicitor who I feel may have covered up something after completion by telling me the 2 month+ wait was down to ‘first registration’.

This entire thing has left a bitter taste in my mouth and stamp duty to pay which as I type is accumulating interest. We have until Sept to pay up or receive an additional fine of 50%.
Is there anyone who can advise as these companies are not governed by anyone and I don’t know where to go or whether the solicitor has anything to answer for.:mad:

Any advice out there please rather than a grilling over (in hindsight) being stupid! What also worries me is they are still advertsiing this service that is now rendered inoperable.

Thank you in advance.

Ivana_Tinkle

Oh dear. I think you might come to regret posting this.

chickaroonee

Yeah put your hard hat on now.

You took the risk and got busted (as you should be), no sympathy here.

If you couldn't afford the stamp duty you should have bought a cheaper house.

I think you'll find most of us on here have paid the stamp duty we owe, so you're not likely to get much sympathy from anyone.

yorkshire_terrier_owner

To be honest I think you only have one option:

Pay up.

shop-to-drop

I'd never heard of this before a post yesterday and here's another. Looks like this may be the latest scam. Glad hmrc are chasing these people up.

shortchanged_2

Terribly poor luck old chap.

Did they tell you at any time that tax evasion was perfectly legal.

mrginge

Well that's the risk you take with tax avoidance.

You got caught.
Cough up.

...or is it just the tax loopholes that you haven't tried to take advantage of that you want HMRC to close?

theartfullodger

Welcome to MSE.

Some might suggest the stinging was due to your greed and gullibility - not us obviously.

Why did you think you deserved special tax evasion treatment & do you think if you don't contribute your fair share you shouldn't get your fair share (CB, Hospital treatment, protection by the Police etc etc...) In return?

Debate can be so illuminating!

Cheers!

ognum

ecswtrav wrote: »

Hi, I'm hoping somebody can help me out. Back in December time last yr we began the process of purchasing a house requiring stamp duty of 8700. We didn’t have this money at the time and found a local company who specialised in a Stamp Duty avoidance scheme. Apparently 10 yrs of no problems or comebacks for clients.
Part of their service included specifying the exact solicitor we had to use and within 30days of completion we would receive half the funds back – we paid 8700 upfront but because we were buying a rundown house that hadn’t been touched for 60yrs so we needed half the funds back for this.

Anyway, we completed on Feb 8th this year. A month went by and still no refund, two months and still no refund. We chased up the company and they referred us to the solicitor. The solicitor indicated that there was a delay because the property was not first registered with it being occupied by an elderly person for the last 60yrs or so. Apparently the main hold up was this issue.

On March 25thwe received a HMRC disclosure form which we were instructed to fill in and return. The solicitor knew nothing about this form but advised us to fill it in if the other company suggested doing so. We did this and returned the form to HMRC on their advice it was needed.

By the end of April we received half the money back as promised released by the solicitor.

Just a few days ago we received a letter from the company who carried out the SDLT indicating that due to the 2013 budget and an announcement that retrospective changes were being implemented, all SDLT schemes from Feb 2012 are invalid and we now have to pay the original sum of 8700 to HMRC plus any interest that has accrued since 30 days after the completion date.

My issue is that the company were well aware that the scheme was doomed to failure after the Budget announcement 2013 which took place on the 20th March. Yet instead of contacting me to explain and meet some form of a compromise they continued to process things – such as sending me a letter out on the 25th March a few days after the announcement.
This company also have 4200 of my money of service that hasn’t worked. I also question the solicitor who I feel may have covered up something after completion by telling me the 2 month+ wait was down to ‘first registration’.

This entire thing has left a bitter taste in my mouth and stamp duty to pay which as I type is accumulating interest. We have until Sept to pay up or receive an additional fine of 50%.
Is there anyone who can advise as these companies are not governed by anyone and I don’t know where to go or whether the solicitor has anything to answer for.:mad:

Any advice out there please rather than a grilling over (in hindsight) being stupid! What also worries me is they are still advertsiing this service that is now rendered inoperable.

Thank you in advance.

Oh Dear as some one else has posted I think you might regret this post, I don't believe you will receive much sympathy or help here from the thousands of people who have paid stamp duty as required.

You say that the firm must have known after the budget that this scheme wouldn't work but why didnt you also realise that?

This country is very short of money and your stamp duty money is required like everyone else's to keep the country going. Sorry no sympathy from me and a big well done to HMRC.

Smith_007

You tried to get out of paying nearly £9000 of tax and have got stung?

Cry me a river.

To put this in perspective, have a read of this post....
A vulnerable person being kicked out of their home due to a £15pw cut in state funding.

http://forums.moneysavingexpert.com/showthread.php

Your £8700 could help them for 11 years.

ecswtrav

Thanks for the grilling. No problem I expected it. I'm paying the stamp duty - I dont have a problem with that - as you and agree I should have done it in the first place rather than scrimping.

The point is the 4k fees they have received for doing nothing and the scam they've commited.

Rather than grilling me anymore realistically is there anything I can do as its the fact I've been somehat conned and they're still at it adversting 100% success.