Stamp Duty pay after completion

geek1981

Hi

We have reserved a property in SE england and will be completing by end of this year. The property I'm buying is 635k and i have to pay around £21k in SDLT for the transaction. I read on the internet there is an option pay SDLT within 12 months after completion with a penalty of £300. i think putting 21k extra into my deposit and pay SDLT on the 12 month works out little better for me. But my solicitor tells me i have to pay this during completion and there is no option to pay later. Anybody have done this?

cheers!

Pixie5740

If you're buying with a mortgage then you'll need to pay SDLT on completion so you'll need to have the money with your solicitor (who I'm assuming is also acting for the lender) before then.

anselld

There is interest as well as late payment penalty. But that is beside the point, your Solicitor will not Complete until you have paid up.

booksurr

just to add to the message, the Council of Mortgage Lenders (CML) under whose rules the solicitor must operate requires that the solicitor has the SDLT money in full in their client bank account before completion

your idea is a dead duck as long as you need a mortgage to buy with

davidmcn

geek1981 wrote: »

I read on the internet there is an option pay SDLT within 12 months after completion with a penalty of £300.

Why do people who read things "on the internet" never tell us where they read it?

Anyway, you (or they) have overlooked the 3% interest you'd need to pay on top of the penalty, plus the fact that paying late isn't actually offered as an option - you'd be in default and HMRC will be pursuing it as a debt.

chelseablue

When we were buying (with a mortgage) the solicitor would not complete without all funds including the 10k stamp duty

geek1981

davidmcn wrote: »

Why do people who read things "on the internet" never tell us where they read it?

Anyway, you (or they) have overlooked the 3% interest you'd need to pay on top of the penalty, plus the fact that paying late isn't actually offered as an option - you'd be in default and HMRC will be pursuing it as a debt.

I read about the £300 penalty for delayed payment upto 12 months here https://www.gov.uk/guidance/stamp-duty-penalties-appeals-and-interest

Thanks for your responses guys, much appreciated!

davidmcn

geek1981 wrote: »

I read about the £300 penalty for delayed payment upto 12 months here https://www.gov.uk/guidance/stamp-duty-penalties-appeals-and-interest

If you had told us that in the first place, we'd have been able to point out that the page is about Stamp Duty (i.e. on share transfers), not Stamp Duty Land Tax.

G_M

There are two seperate issues:

1) HMRC.
As you say, HMRC require payment within 30 days of Completion, or impose a penalty. Your choice.

2) mortgage lenders.
A mortgage lender will not allow their solicitor to Complete on your loan unless he has the full funds for SDLT and undertakes to pay HMRC within the 30 days.

Of course, if you are paying cash and have no mortgage, then 2) above is irrelevant, and you can simply comply with 1) above.