Can I pay stamp duty late?

sturgeon

There's many upcoming variables when selling my house in order to move to a new build to be completed in January.


I'm understandably worried slightly about finances and have asked my solicitor if it's possible to pay my stamp duty late. Strictly speaking it must be paid within 30 days of completion and the solicitor must fill in the form prior to completion regardless.


This could give me some breathing room-and if for some reason I have to pay within 60 days rather than 30 I believe there is interest to pay?


Main concern is if paying late impacts my credit record in any way? My solicitor is OK with a payment after completion but has of course advised me that I could incur charges.

Pixie5740

How would it impact your credit file? Only credit accounts such as loans, mortgage and credit cards show up there.

I think it's only cash buyers that are able to pay the stamp duty later.

bobbymotors

You have to lodge sufficient funds with the solicitor before completion to cover all costs. This includes the SDLT.


If the solicitor lets you lodge it with him after completion he is breaking the law.

martinsurrey

bobbymotors wrote: »

You have to lodge sufficient funds with the solicitor before completion to cover all costs. This includes the SDLT.


If the solicitor lets you lodge it with him after completion he is breaking the law.

no he's not, you can buy a house without a solicitor and pay your own stamp duty.

you can buy a house for cash, through a solicitor, and submit your own stamp duty return.

you may find issues if you're buying with a mortgage as it'll be the mortgage company who insist all fees are with the solicitor before they allow them to complete.

booksurr

bobbymotors wrote: »

You have to lodge sufficient funds with the solicitor before completion to cover all costs. This includes the SDLT.


If the solicitor lets you lodge it with him after completion he is breaking the law.

this question comes up frequently, it appears you do not know the answer to it

if the OP requires a mortgage with which to fund his next purchase then his conveyancer/solicitor is obligated by the Council of Mortgage Lenders to hold sufficient funds to ensure the tax can be paid as part of the completion process. A solicitor has a professional and ethical duty imposed on him by the Law Society to adhere to that obligation but it is not the law or a legal duty

if OP does not need a mortgage he can pay the SDLT whenever he wants as there is no need to go via the conveyancer. Obviously being late will result in an interest charge from HMRC and may have to pay a penalty on top.
https://www.gov.uk/stamp-duty-penalties-appeals-and-interest

bobbymotors

mortgage company who insist all fees are with the solicitor before they allow them to complete.


his conveyancer/solicitor is obligated by the Council of Mortgage Lenders to hold sufficient funds to ensure the tax can be paid as part of the completion process.


Quite right. my apologies...but since 95% of transactions are with a mortgage it might as well be the law!


But I do understand now that it isn't.

silvercar

bobbymotors wrote: »

mortgage company who insist all fees are with the solicitor before they allow them to complete.


his conveyancer/solicitor is obligated by the Council of Mortgage Lenders to hold sufficient funds to ensure the tax can be paid as part of the completion process.


Quite right. my apologies...but since 95% of transactions are with a mortgage it might as well be the law!


But I do understand now that it isn't.

Only about two thirds of purchases are with a mortgage.

G_M

bobbymotors wrote: »

mortgage company who insist all fees are with the solicitor before they allow them to complete.


his conveyancer/solicitor is obligated by the Council of Mortgage Lenders to hold sufficient funds to ensure the tax can be paid as part of the completion process.


Quite right. my apologies...but since 95% of transactions are with a mortgage it might as well be the law!


But I do understand now that it isn't.

Before making catagorical statements on which others might rely, consider whether they are true.

as you now acknowledge, your statement was not true.

a) in NO situation would a solicitor be 'breaking the law' (what law?). He might be breaching the terms under which he is employed by a mortgage lender, but certainly nothing illegal.

b) many buyers do not use mortgages in which case the solicior is under NO obligation to have SDLT funds prior to Completion

c) some lenders (admitedly in rare cases) might permit Completion to take place prior to SDLT funds being placed with the solicitor in special circumstances

sturgeon

Well i'm a little confused, as my solicitor has said that he does still need to fill in the required documentation but yes I am free to pay the stamp duty myself (I've said I'll do it within 30 days of completion, which is the guidance from HM Revenue and Customs). Just that I will of course be liable for any fees resulting from this.

I will be obtaining a mortgage for the new property too, so I'm not a cash buyer.

He's mentioned nothing about the lender requiring the stamp duty to be with my solicitor before completion. Is it actually any of their business? Unless of course I don't pay it at all, in which I could be in financial trouble. But still, the Stamp Duty regs say you can pay within 30 days of completion no issues.

kingstreet

sturgeon - if a lender expects solicitors to adhere to the CML Handbook, the solicitor is required to have cleared funds in hand to cover all the completion costs and fees, in advance of completion. This includes stamp duty, regardless of HMRC rules.

There are a very small number of lenders whose CML Handbook requirements are "patchy" to say the least. If YOUR lender does not have this requirement, that is fine but that cannot be assumed as the MO for more than a very small number of lenders.

If a solicitor flouts the CML Handbook requirements, HE accepts liability for paying the stamp duty.

davidmcn

sturgeon wrote: »

He's mentioned nothing about the lender requiring the stamp duty to be with my solicitor before completion. Is it actually any of their business?

I'm not entirely sure why lenders insist that the solicitors are holding the SDLT funds before completion, because I'm not aware of any circumstances in which the lender would end up having to pay - it's a personal liability by the purchaser. All that must happen in order to allow registration is that the SDLT return is submitted.

However, the standard CML Handbook instruction is that the funds must be with the solicitor, so there's no point trying to argue with the lender or solicitor about it.