Unscrupulous Solicitor firm cheating on Stamp Duty Payment- Advice needed please

chuang6

My wife and I purchased a property in 2013 and we had made full SDLT - Stamp Duty Land Tax payment nearly 8000 pounds to Reeve Fisher & Sands Solicitors. They failed to make the payment to HMRC on our behalf before their collapse and closure in 2014.

They are now under criminal investigation for fraud in the last 5 years and it is still on going!

We have contacted HMRC recently – they confirmed that the debt has not been cleared and it is increasing with additional interests added, and with no date in sight for the resolution. HMRC produced a statement showing the total amount and HMRC said that my wife and I are ultimately responsible for the debt, the current situation has given us immense stress and anxiety.

HMRC doe not demand us for a payment for now and they are waiting for the criminal investigation on the unscrupulous solicitor firm. But they said the ultimate responsibility is us, because we are the property purchaser.

We contacted their solicitor’s regulatory body- Council of Licensed Conveyance (CLC) and asked them to use their compensation fund pot to pay the owed SDLT – we have shown them the evidence that we have paid already to the collapsed firm. CLC refused to pay for now as police and all other creditors are all investigating and trying to recover money from the fraud. But CLC saying that it is unlikely we will be asked to pay again, but no guarantee.

My wife and I want clarity for our future position and would prefer HMRC settlement to be done immediately to avoid the escalating debt. But it seems to be not possible for now.

This is a precarious situation to us and it has given my family immense stress and unbearable anxiety.

Please share your advice and experiences. Should we worry about this at all? Would HMRC write this off in the future? Would CLC ultimately use Compensation fund to pay? We have all the Solicitor letter and bank transfer details and evidence for the paid SDLT.


Thank you for your advice!!

G_M

There are two options.


1) you pay HMRC yourself now so that the interest paymets cease and you get them off your back
2) you wait for HMRC to make a demand
3) you wait for CLC to pay compensation.


(oops! poor maths)

hazyjo

I used them in 2013 too. Had heard about the fraud.

Can I ask how you found out it wasn't paid? Did you make enquiries or was there something that alerted you to it? I've moved since then and nothing has ever been flagged so have presumed I'm okay. Was never 100% sure though

chuang6

G_M wrote: »

There are two options.


1) you pay HMRC yourself now so that the interest paymets cease and you get them off your back
2) you wait for HMRC to make a demand
3) you wait for CLC to pay compensation.


(oops! poor maths)

I agree with you for the three options. But the difficulty is which one? Currently we are waiting for one year since talking to CLC. HMRC is not demanding for payment now and CLC said that I shall pass the demand to CLC if receiving it. I can not tell how confident that CLC will pay, may be 90%??

chuang6

hazyjo wrote: »

I used them in 2013 too. Had heard about the fraud.

Can I ask how you found out it wasn't paid? Did you make inquiries or was there something that alerted you to it? I've moved since then and nothing has ever been flagged so have presumed I'm okay. Was never 100% sure though

It is purely by accident as I recommended my friend o use them and my friend called them found that there were no replied. I goggled them fund that it was in media news.

hazyjo

chuang6 wrote: »

It is purely by accident as I recommended my friend o use them and my friend called them found that there were no replied. I goggled them fund that it was in media news.

Yeah I was going to recommend them to someone on here and found it all out too. Prob less than a year ago. As soon as I saw your title, I knew it was them. Really very rare!

Who did you deal with, and what month? Mine completed in April 2013, and I dealt with Gaynor (spelling may have been different and can't remember her surname. May have been Purcival or something, although not sure where that memory has come from).

Just wondering if I need to look into this further. Been avoiding it I think.

Does anyone know if it would have been picked up when I bought my next house? Starting to worry a bit...

hazyjo

Ps was wondering more how you found out *yours* wasn't paid.

I've never heard anything from anyone.

G_M

chuang6 wrote: »

I agree with you for the three options. But the difficulty is which one?

Well I know which I'd choose!

Ps was wondering more how you found out *yours* wasn't paid.

Perhaps OP is trying to sell? So far as I remember, the Land Registry will not accept or act on a TR1 unless the apprpriate receipt is sent showing SDLT has been dealt with, so presumably the property is not yet in the OP's name.....??


edit: yes: see LR checklist point 2:


https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/605125/Registered-land-checklist-HM-Land-Regisrty.31.03.17.pdf

SmashedAvacado

I think you need to make sure your position is preserved as it’s nearly six years - so if the insolvent entity had valid insurance and there’s potential for you to be compensated to enable you to pay the tax you don’t want to find your claim is time barred

Speak to a solicitor specialist in professional negligence

hazyjo

G_M wrote: »

Perhaps OP is trying to sell? So far as I remember, the Land Registry will not accept or act on a TR1 unless the apprpriate receipt is sent showing SDLT has been dealt with, so presumably the property is not yet in the OP's name.....??

Thanks - that's more reassuring for me (sorry OP!) as I sold that house in 2017. Sounds like it would've been flagged up then? Gawd. Really not something you expect to happen to you!

chuang6

SmashedAvacado wrote: »

I think you need to make sure your position is preserved as it’s nearly six years - so if the insolvent entity had valid insurance and there’s potential for you to be compensated to enable you to pay the tax you don’t want to find your claim is time barred

Speak to a solicitor specialist in professional negligence

I am not sure that I fully understand you. Are you saying after 6 years, I may be barred from making a claim against CLC - Insurance & professional regulatory body? Is this a delaying tactics from CLC? Thank you