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

davidmcn

G_M wrote: »

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

That will (I think) merely be the acknowledgement that the SDLT return was submitted - whether HMRC got the cash thereafter is a separate matter.

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)

Please may I ask you which choice you would make, please share your thought if you do not mind. I used yours as my reference. Thank you very much indeed!!

G_M

2) and then think again, and either 1) or 3) at that point.


Especially as you now say you have sold the property on.

chuang6

Please see the below statement from CLC website on Dec 11 2013 after the firm's collapse.



"Stamp Duty Land Tax Payments
It appears that some payments of Stamp Duty Land Tax (SDLT) should have been made by Reeves Fisher & Sands on behalf of the client, but were not in fact made. The CLC is working with HMRC to find out where this has happened, and to try to ensure that demands for payment of SDLT do not continue to be made when that tax should already have been paid by Reeves Fisher & Sands.

Where Reeves Fisher & Sands held a client’s money for the payment of SDLT and did not make that payment, the client will not be required to pay the tax themselves. The payment will be made either from the funds of Reeves Fisher & Sands or, in the event that they are not sufficient, from the CLC’s Compensation Fund."

Does this give me assurance that I will not be asked to pay again even HMRC still put me as a liability person.

BTW - I have not sold the property, my father in law still live in the property.

steampowered

The CLC's statement looks pretty clear to me.

I don't think you should worry about it.

boo_star

chuang6 wrote: »

Please see the below statement from CLC website on Dec 11 2013 after the firm's collapse.



"Stamp Duty Land Tax Payments
It appears that some payments of Stamp Duty Land Tax (SDLT) should have been made by Reeves Fisher & Sands on behalf of the client, but were not in fact made. The CLC is working with HMRC to find out where this has happened, and to try to ensure that demands for payment of SDLT do not continue to be made when that tax should already have been paid by Reeves Fisher & Sands.

Where Reeves Fisher & Sands held a client’s money for the payment of SDLT and did not make that payment, the client will not be required to pay the tax themselves. The payment will be made either from the funds of Reeves Fisher & Sands or, in the event that they are not sufficient, from the CLC’s Compensation Fund."

Does this give me assurance that I will not be asked to pay again even HMRC still put me as a liability person.

BTW - I have not sold the property, my father in law still live in the property.

You and only you are responsible for paying any tax that is due.

If they have cheated the government out of stamp duty, that is on you.

You may have a claim against them but you still need to pay HMRC their cut and chase CLC for their cut that they took off you.

SmashedAvacado

chuang6 wrote: »

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

Your claim against the original party would potentially be time barred after 6 years. If the fund is there to step into your claim, then you need to get some advice or something very clear from the CLC that confirms that notwithstanding the timing, that you are covered. This is quite a complex area of law - hence why i am suggesting you speak to someone who understands the roles. It might be that the CLC will pay regardless, but i would want their clear unequivocal confirmation of that.

Jumblebumble

boo_star wrote: »

You and only you are responsible for paying any tax that is due.

If they have cheated the government out of stamp duty, that is on you.

You may have a claim against them but you still need to pay HMRC their cut and chase CLC for their cut that they took off you.

If this is the case why are the HMRC not actively chasing the money with debt recovery procedures?
It could be interpreted that HMRC expect CLC to pay but with interest
They are just telling you that if CLC do not pay you are responsible which is no doubt correct
It seems to me that CLC or the solicitors insurers must end up paying as if they don't it totally undermines the principle of solicitors undertakings which would be an absolute disaster.
Is it HMRC who insist that solicitors collect the stamp duty rather than allowing the customer to pay it themselves?

Jumblebumble

SmashedAvacado wrote: »

Your claim against the original party would potentially be time barred after 6 years. If the fund is there to step into your claim, then you need to get some advice or something very clear from the CLC that confirms that notwithstanding the timing, that you are covered. This is quite a complex area of law - hence why i am suggesting you speak to someone who understands the roles. It might be that the CLC will pay regardless, but i would want their clear unequivocal confirmation of that.

I suspect the CLC will not give this confirmation as it would give the liability insurers no incentive to cough up

chuang6

Please see the CLC's reply to me in Nov 2018 when I was pushing for their compensation to avoid escalating interests. They left it open. Your perspectives and interpretations are most welcome. Thank you


"To clarify, grants are made out of the CLC’s Compensation Fund at the absolute discretion of the CLC and there is no legally enforceable right to a grant. Further, the Compensation Fund is a fund of last resort which means that the CLC needs to be satisfied that all other means of recovery have been unsuccessful. As soon as we have been notified by HMRC that they have concluded their involvement and assuming that they have not been able to recover all sums due, we shall start assessing the individual claims."