Stamp Duty on Credit Card

jimmy_boy81

Hi there a quick query.


We're looking to exchange shortly and my solicitors have contacted me with regards to the deposit. Within their letter they have advised about the Stamp Duty element and I have advised that I was looking to pay the same by way of a 0% credit card.


When we complete what is the process with regards to paying the stamp duty? Do we get notification from HMRC or does this go to my solicitor? I am aware from HMRC website that this has to be paid within 30 days so surely how I pay it is down to me?


And no I don't have the amount available to pay the stamp duty


Thanks in advance

Pixie5740

jimmy_boy81 wrote: »

Hi there a quick query.


We're looking to exchange shortly and my solicitors have contacted me with regards to the deposit. Within their letter they have advised about the Stamp Duty element and I have advised that I was looking to pay the same by way of a 0% credit card.


When we complete what is the process with regards to paying the stamp duty? Do we get notification from HMRC or does this go to my solicitor? I am aware from HMRC website that this has to be paid within 30 days so surely how I pay it is down to me?


And no I don't have the amount available to pay the stamp duty


Thanks in advance

Are you purchasing the property using a mortgage? If so you will need to have the funds to pay the SDLT with your solicitor before the lender will release the mortgage funds.

hazyjo

They won't agree to you taking on debt to pay for the SD. Are finances that tight? Will you have any savings at all when you move in?

Red-Squirrel_2

If you don't have the funds ready to pay the stamp duty you can't afford to buy the house, you aren't ready to exchange and need to make sure your solicitor knows this.

G_M

If you buy without a mortgage you have 30 days to pay HMRC. You can either submit the form and funds yourself, or pay your solictor to do this for you.

If you are getting a mortgage, the lender will require that the SDLT money is with their solicitor (usually the same as your solictor) before Completion. He will then pay HMRC after Completion.

steampowered

Your solicitor will probably need to be in funds for the SDLT at completion.

Can you put all of your day-to-day spending on the 0% credit card instead, so that you can save up enough cash to pay the SDLT on completion?

hazyjo

jimmy_boy81 wrote: »

...and I have advised that I was looking to pay the same by way of a 0% credit card.

tbh, I think all the advice above will be irrelevant as it looks like you've shot yourself in the foot.


Has your solicitor come back to you yet?


Can you do as suggested and pay for everything else on the card and scrape together enough? I'm guessing not, but obviously depends on your house purchase price.

00ec25

if you buying the property using a mortgage the solicitor must have the SDLT funds in their account before you complete. The HMRC 30 day deadline is irrelevant in that case

your solicitor may (though I think it less likely) accept a payment made to them by credit card, but if they do I'll bet they will add on the bank charges that they will incur for taking payment via such a method

it sounds like you need to be talking to your solicitor ASAP to make sure you do not exchange before you are in a financial position to be able to complete!!!

ashe

there is a way you can do this if you have a money transfer offer on your 0% card. MBNA do money transfers at 0% APR for 3.5% rate or 4.9% APR with no fee.Check with your card provider.

hammy1988

Be careful if you have applied for a mortgage, putting a large amount on a credit card will flag up on your credit file...which they will be monitoring and could withdraw your offer.

Word of advice, borrow from a family member/friend...and then pay them back on the card with a money transfer after the sale has completed!

Cirias

You should consider the stamp duty as part of the solicitor's fees, and they should usually have included it in their original broken-out quote to you before you engaged them. Putting any large amount of money on credit right now is a bad idea as the lender can see it and may withdraw your offer.