Stamp Duty Fee

wildcath_20

Just a quick question to make sure my solicitor is pulling a fast one.


The property I am buying is below the stamp duty threshold.


They are charging me £75 for Dealing with the Stamp Office – The file is to be entered onto the Stamp Duty Land Transaction site even though there is no stamp duty payable they claim.


Its feasible they still have to do this but wanted to hear it from someone else first.


Cheers

pinkteapot

The charge is normally for filing the Stamp Duty Land Transaction (SDLT) tax return form. IIRC, the form has to be completed for all purchases at more than £40k, even though those between £40k and £125k don't result in any tax being paid.

I think our solicitor only charged about £50 for this so yours is on the expensive side, but if that's their fee then that's their fee. When you get quotes from solicitors at the start, it's best to ask for a breakdown of all fees. The actual conveyancing fee is normally a few hundred quid and then all these extras get added on.

AnotherJoe

Just a quick question to make sure my solicitor is pulling a fast one.
======

Is that code for "is outright committing fraud and is risking his career for £75" ?

wildcath_20

https://www.gov.uk/guidance/stamp-duty-land-tax-transactions-that-dont-need-a-return#exempt-transactions


Just found it.


Saw it on the quote at the start but assumed it wouldn't apply as the property was under £117k.


I could fill it out myself for the inexpensive fee of zero but considering you have to get a paper form and then post it then I would rather not.


Cheers

wildcath_20

AnotherJoe wrote: »

Just a quick question to make sure my solicitor is pulling a fast one.
======

Is that code for "is outright committing fraud and is risking his career for £75" ?

The awful service my solicitor has given me feels like outright fraud!


I wouldn't put it past them...I have been reading stories where some solicitors have been taking stamp duty payments and then never passing them onto HRMC and then shutting down.


I'm sure they are not all the same!

duggan1

wildcath_20 wrote: »

The awful service my solicitor has given me feels like outright fraud!


I wouldn't put it past them...I have been reading stories where some solicitors have been taking stamp duty payments and then never passing them onto HRMC and then shutting down.


I'm sure they are not all the same!

You have 30 days to pay the stamp duty but solicitors insist on you paying immediately. It doesn't take a huge jump to imagine what might happen to your x '000s of pounds within those 30 days:)

TrickyDicky101

duggan1 wrote: »

You have 30 days to pay the stamp duty but solicitors insist on you paying immediately. It doesn't take a huge jump to imagine what might happen to your x '000s of pounds within those 30 days:)

I believe it is one of the requirements in the Council of Mortgage Lenders' handbook that the full SDLT needs to be lodged with the solicitor prior to completion, so if there is a mortgage involved then it isn't the solicitor driving this.

davidmcn

duggan1 wrote: »

You have 30 days to pay the stamp duty but solicitors insist on you paying immediately. It doesn't take a huge jump to imagine what might happen to your x '000s of pounds within those 30 days:)

Not a lot, given current interest rates? Probably not worthwhile the added admin of diarising it to make sure it gets paid versus the penalties involved if you're late.

G_M

Who's doing the conveyancing?

Most reputable solicitors will complete the SDLT return as part of their basic conveyancing fee. It has to be done, so should be part of the service.

However some conveyancing companies charge this as an 'extra' on top of their fee. You'll find it in their terms of business somewhere.

It allows them to charge a lower basic fee making them look competitive, but this, plus other 'extras', may make them more expensive.

The form has to be sent to HMRC whether SDLT is payable or not.

You can complete the form yourself provided
a) there's no mortgage involved (or the lender agrees)
b) you are capable - it's a long nd slightly tricky form, but not beyond a reasonably capable person