Renting Question

dancingfairy

Hi. Hope someone can help. We have signed to move into rented accomodation via an agency. We have paid the deposit and are due to move on Saturday, anyway we got the contract through and it says we need to pay stamp duty land tax? My partner seems to think through research that we have to pay this to the inland revenue and it's 1% of our deposit and applies because the deposit is more than £600 - is this correct? Should the letting agency have told us about this? Anyone heard of this before.
Thanks
a stressed out dancing fairy

boyse7en

Not sure if it is correct, but as it is only £6 I wouldn't get too stressed about it Fairy

Lavendyr

Sounds very odd, we pay more than £600 pcm rent and have never had to pay anything like that, but as above, for £6 I don't think it's worth making a fuss about.

Gingernutmeg

I've never heard of this either and our deposit was about twelve hundred pounds. Since our letting agency are charging us for just about everything else it seems strange that they've not told us about this charge!

But if it's not *that* much money I wouldn't worry, but I'd check to see if there are any other hidden charges.

Notlob

Hi Dancingfairy,

Stamp duty is only payable if the rent has a net present value (NPV) of over £125,000 over the term of the tenancy. This includes periodics.

For more info, follow the link

http://www.hmrc.gov.uk/so/sdlt-basics.htm

Notlob

pcwilkins

Our deposit was £800+ and we didn't have to pay any stamp duty.

Are you sure that the contract is not simply saying that you are liable for any stamp duty it if applies? That would make more sense --- probably a standard contract term.

In any case I wouldn't get too stressed about it. Just wait and see. If the IR want your £6, they will ask.

Peter

IamNotOneOfTHEM

boyse7en wrote: »

but as it is only £6 I wouldn't get too stressed about it Fairy

Lavendyr wrote: »

but as above, for £6 I don't think it's worth making a fuss about.

Gingernutmeg wrote: »

But if it's not *that* much money I wouldn't worry.

The problem with us is that when we do not "mind" these small amounts, these usually are the stepstones for THEM to grab, grab and keep grabbing all your hard earned money!

Even if its for a single pence, i would fight for it ! After all, its my money and i wouldnt let anyone cheat me out of it.

Gingernutmeg

Given my experience with tenancy agreements, letting agents and landlords, I'd much rather have somewhere to live than six pounds, but each to his own lol. A lot of the things that tenants have to pay for aren't exactly fair, but because I need somewhere to live I just have to grin and bear it - I don't really have the luxury of loosing my home time after time.

Lavendyr

IamNotOneOfTHEM wrote: »

Even if its for a single pence, i would fight for it ! After all, its my money and i wouldnt let anyone cheat me out of it.

Each to their own. I'd rather be happy, relaxed and have a roof over my head than get stressed out over £6. :j

Melissa177

SDLT is not applicable, remind the LA to take the silly clause out of the contract as it doesn't apply.

dancingfairy

Hi Thanks for all the replies. The deposit is about £1000 I think, the 1 months rent in advance is £700 and we have to pay agents fees of about £350. It just wasn't mentioned to use when we signed and I thought we had all the fees covered - yes it may only be £10 but when you have just graduated and haven't got a job and you can't get any benefits 'cos you're moving in with your partner and he can't afford to pay the rent on his own and expects me to pay my half - I can't afford to let a £10 go here, a £10 there ,etc, and we had to pay £12 for a bankers draft (they refuse any other payments)- what other hidden costs are there we don't know about? Also apparently they are going to give me job seekers allowance for the last 4 weeks when they get it sorted- it's all just stressing me and I have interviews being lined up left,right and centre as well.
Thanks for all the advice.

P.S We also 'think' it's 1% - we aren't really sure and we don't want any nasty surprises.