Can you pay Stamp Duty yourself or need a solicitor?

WLITC

I understand that normally if you need to pay Stamp Duty, your solicitor will pay it on completion. However, I also understand you technically have 14 days from completion to pay it (at least according to HMRC site) If that's the case, but I am waiting on funds to come through to go towards the Stamp Duty, could I just say to the solicitor not to pay it, and just pay it myself directly within those 14 days?

Slithery

Are you getting a mortgage on your new purchase?

If you are then no, the lender will insist that the solicitor has the cash in time for completion.

If you don't need a mortgage then yes, you can elect to pay the stamp duty yourself (and maybe save a few quid in solicitors fees by filling in the forms yourself).

WLITC

Slithery wrote: »

Are you getting a mortgage on your new purchase?

If you are then no, the lender will insist that the solicitor has the cash in time for completion.

If you don't need a mortgage then yes, you can elect to pay the stamp duty yourself (and maybe save a few quid in solicitors fees by filling in the forms yourself).

Yes I am getting a mortgage. However just to be clear I have enough to pay my solicitors and mortgage fees, etc, but they are looking to possibly complete a little earlier than I had hoped (just days before my April salary and annual bonus is paid) and thus money is going to be a bit tighter. As its shared ownership and I am only buying a share, I don't actually have to pay any Stamp Duty (first time buyer and its under the threshold) but I was contemplating paying stamp duty on the full value on the assumption that one day I will staircase to 100% and it'll save me several grand in the future.

Slithery

WLITC wrote: »

As its shared ownership and I am only buying a share, I don't actually have to pay any Stamp Duty (first time buyer and its under the threshold) but I was contemplating paying stamp duty on the full value on the assumption that one day I will staircase to 100% and it'll save me several grand in the future.

That may change things then.

What did your solicitor say when you asked them?

WLITC

Slithery wrote: »

That may change things then.

What did your solicitor say when you asked them?

Haven't managed to speak to anyone yet. Only instructed them yesterday so apparently they are still setting up my account and someone will be in touch in a day or two. With that said, I think I was just having a panic and overly worrying. I was concerned for a while that my Help To Buy ISA bonus that the Government payout, wouldn't be available before completion but I now know that's not the case (and it also has to form part of the completion funds) and on the basis of having the ISA bonus available, it means I will have more savings left over after paying out my deposit to pay for the Stamp Duty on completion.

davidmcn

WLITC wrote: »

Yes I am getting a mortgage.

In that case your solicitor needs to deal with the SDLT at completion, as that will be part of their instructions from the lender

(paras 10.4 to 10.6 of the CML Handbook, which is the standard set of instructions most lenders use)

I was contemplating paying stamp duty on the full value on the assumption that one day I will staircase to 100% and it'll save me several grand in the future.

You might be able to amend the return after completion to do that (there's certainly a mechanism for making corrections to a submitted return, not sure whether it would cover this).

eddddy

WLITC wrote: »

Haven't managed to speak to anyone yet. Only instructed them yesterday so apparently they are still setting up my account and someone will be in touch in a day or two.

If you've only just instructed a solicitor for your purchase, how do you know when completion will be?

SDLT_Geek

davidmcn wrote: »

You might be able to amend the return after completion to do that (there's certainly a mechanism for making corrections to a submitted return, not sure whether it would cover this).

It is possible to amend a return to make an election for market value treatment. That is set out in Finance Act 2003 / Schedule 9 / paragraph 2(3). Amendments can be made within 12 months and 14 days from completion. It does not work the other way though: that provision says that once the election for market value treatment is made, it is irrevocable so a return cannot be amended to withdraw it.