Stamp Duty. When do I pay?

dleafy

He all,
We completed yesterday and I paid the money to the solicitor.
I've just noticed that there was no mention of stamp duty in amongst the (long) list of things to pay. Is this normal?
When exactly do you pay the stamp duty?

davidmcn

Is there stamp duty payable on your purchase? What's the price?

ETA: If looking at baffling items on your statement, you do realise it isn't actually called "stamp duty" any more? It's Stamp Duty Land Tax, or SDLT (or Land & Buildings Transaction Tax/LBTT in Scotland).

Levs01

My stamp duty is on my completion statement. We complete Monday and I've signed the paperwork with the SDLT on it. Once we complete Monday the solicitor will pay it.

G_M

HMRC require payment within 30 days of Completion.

If you are paying it yourself (and completing the 8 page form) you can pay anytime up to 30 day.

Most people get their solicitor to pay it (and if you have a mortage, the mortgage lender will insist on the solditor paying it.).

In that case, you will be required to pay your solicitor in advance of Completion,so that he has the money ready to pay after Completion. Your solicitor sould have given you a 'Competion Statement' before Completion specifying ALL the costs, including SDLT, and requiring the funds are trnsferred to him.

Are you getting a mortgage? And if not, does your contract with the solicitor include payment of SDT?

dleafy

The solicitor did inform us how much it would be from the start. We got the flat for £53,000.
I expected it to be on the final bill that I paid yesterday but it wasn't.
We paid cash for the property.
I'll ring her on Monday to sort it.

Thanks

scragend

dleafy wrote: »

The solicitor did inform us how much it would be from the start. We got the flat for £53,000.
I expected it to be on the final bill that I paid yesterday but it wasn't.
We paid cash for the property.
I'll ring her on Monday to sort it.

Thanks

If you're only paying £53,000 for the property then there is no SDLT. The threshold for SDLT to become payable is £125,000.

dleafy

It's actually a second property, which we plan to let out.

Bluebirdman_of_Alcathays

It sounds like you have a crap solicitor that doesn't realise that additional properties have the 3% surcharge. The liability is yours, however, and if HMRC find out it will be you who pays penalties and interest. You should call your solicitor on Monday.

G_M

Whether SDLT is due or not, a return is required (form SDLT1).

Question 1 requires you (or your solicitor on your behalf) to specify if this is a 2nd property. So you should check that your solicitor is completing the form correctly.

If you/he answer Q1 as "01 - Residential" then SDLT would not be required as the purchase price is below the threshold - this may be what he is doing, though this would be inaccurate - tax fraud.

If you/he answer Q1 correctly as "04 - Residential - additional properties" then SDLT should be paid.

agrinnall

Bluebirdman_of_Alcathays wrote: »

It sounds like you have a crap solicitor that doesn't realise that additional properties have the 3% surcharge.

There's nothing to support this view and the OP provides evidence to contradict it...

dleafy wrote: »

The solicitor did inform us how much it would be from the start.

dleafy

Rang the solicitor today. It was an oversight (typing error) by their finance department.
All sorted and paid now.
Thanks for the input.