Will i have to pay stamp duty?

Samsmom

Hi . Sorry for the question . Just don't know where else to seek help .

I have been bullied into buying a second little cottage by my husband & its causing so many problems & stress I am deepy regretting it . I won't bore you with all the details. But its cost us heavily both in family relationships & now financially .

Basically my question is .... Will I have to pay stamp duty on it now .
I know the law states anything after April 1st incurs a charge . But ours is not a black and white case .

Probably rather foolishly we tried to save solicitors fees etc and as the property was being passed from father in law to daughter in law we all trotted off to the land registry to do it ourselves . This was done BEFORE 1st April . Signed over and everything .

We have now received a letter informing us that we had to fill in a stamp duty declaration thing . I thought no stamp duty was due as it was signed over before 1 st of april . Is this now not the case ?

The key thing here is although it was signed over in the land registers office , no money has changed hands yet as my father in law has said to give it to him when we have it .

So have we truly completed in time to meet the april 1st ?

The other query is , on paper its worth £80 k . But my father in law said give him £65

So which figure would i put for stamp duty declaration ?

Wished i have never consented to buying this cottage ....its been nothing but trouble and now its set to possibly cost us a further £2400 stamp duty , which to be honest we dont have .

Does anyone know if we have completed in time before april 1 st as it was signed over in land registry before then ? Even though it may take years for the £ to change hands .
Thanks .

Just to add......its a holiday let cottage that has been purchased that was in need of massive massive renovation, not my father in laws home .

davidmcn

The date you transferred title is the date of completion (and also the relevant date for stamp duty purposes). As the consideration (i.e. the £65k) was over £40k then you still need to submit an SDLT return, irrespective of whether any duty is actually payable. And quickly as there are penalties for not doing it within 30 days.

Bluebirdman_of_Alcathays

No SDLT due - completion was evidently before 01/04.


Domestic abuse isn't just physical, I'll leave this here.


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Samsmom

Bless you. Thanks for your reply !
We are just waiting for 1 to come through the post now . I think the 30 days is almost up now though as they literally only sent us the letter saying we needed one yesterday .

Our fault for not doing research!

I tried to fill something in on line yesterday but it wouldn't let me as i dont have an up to date passport so i couldnt get a government gateway card. Spent over an hour on the phone trying to get help, but literally couldn't speak to anyone they were so busy .

I appreciate you time and trouble in answering. Thanks

Samsmom

Thanks for your reply too Bluebirdm

Bless you x x

johannalf88

Surely stamp duty may still be due, just not the increased stamp duty for the 2 properties? Don't you still have to fill out a stamp duty declaration even if it is below the amount? (Of which I have no idea what it is - I live in London where such a luxury is not a problem!)

Samsmom

From my very limited understanding johannalf88 i think stamp duty is only due on second properties completed after april1st . Before that anything under the value of £125k didnt incur one .
The rules have just changed . Hoping we have just met the deadline . Though i do understand why they have been introduced.....so if we havent met it , we will just have to pay it .

I am probably completely wrong as i know nothing about this kind of thing

Thank you for your replies and advice everyone .
Really appreciate it :-)

gingercordial

johannalf88 wrote: »

Surely stamp duty may still be due, just not the increased stamp duty for the 2 properties? Don't you still have to fill out a stamp duty declaration even if it is below the amount? (Of which I have no idea what it is - I live in London where such a luxury is not a problem!)

The stamp duty (the kind that would have applied regardless, not the new 3% extra) will be nil as the sale price is less than £125k.

However since the sale price is more than £40k Samsmom still has to send in an SDLT return which shows nil tax due.

I live in London too - agreed no chance of ever buying anything below that threshold!

johannalf88

You can get houses under £125k! - :rotfl:

cloo

Yes a request for a declaration doesn't have to mean there is anything to pay.

Hope things look up for you, Samsmom.

Samsmom

Thanks again for your help guys . :-)

The property was in need of renovation ...which we have just completed .
Its location is next to the beach in Norfolk with open fields from every window and the sea from one , in an area of sssi protected land .

Hoping to get it valued again next week now the renovations are complete .

Thanks for your replies guys :-)