SDLT calculator is …. Wrong !

davidfinch

Sadly the calculator produces by MSE is too simplistic, and results in most people overpaying the amount of Stamp Duty Land Tax  (SDLT) that is due.

examples - it ignores details of the property such as the existence of an annex with its own front door;

it ignores the sellers situation - where they are forced to sell because their job is moving - so their buyers have no SDLT to pay;

It ignores the time when the property has been empty.

solicitors are not SDlT experts - they get their office junior to fill in the on-line HMRC portal that is also too simplistic and over-calculates the amount of tax due.

MSE really need to look into this subject -contact a specialist SDLT accountant for advice.

Pixie5740

davidfinch said:

Sadly the calculator produces by MSE is too simplistic, and results in most people overpaying the amount of Stamp Duty Land Tax  (SDLT) that is due.

examples - it ignores details of the property such as the existence of an annex with its own front door;

it ignores the sellers situation - where they are forced to sell because their job is moving - so their buyers have no SDLT to pay;

It ignores the time when the property has been empty.

solicitors are not SDlT experts - they get their office junior to fill in the on-line HMRC portal that is also too simplistic and over-calculates the amount of tax due.

MSE really need to look into this subject -contact a specialist SDLT accountant for advice.

I don't think anyone should rely a simple online calculator to work out their SDLT liability.  There's money saving and then there's being tight. Solicitors should have a good grasp on the SDLT although many threads here would suggest otherwise.  If you want a comprehensive answer then read the manuals or engage an accountant.  If you say his name 3 times @SDLT_Geek might even appear on the forum and help you.

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09820

I have no idea why the seller's situation makes any difference to the buyer's SDLT position.  The SDLT I have to pay is based on my circumstances not why the seller is selling.

babyblade41

what a weird 1st post 

Davesnave

babyblade41 said:

what a weird 1st post 

 I'd guess they have a personal interest of some kind; perhaps expertise in this area, though it's news to me that a seller's circumstances have any bearing on a buyer's SDLT. Why should this be? 

grumiofoundation

davidfinch said:

Sadly the calculator produces by MSE is too simplistic, and results in most people overpaying the amount of Stamp Duty Land Tax  (SDLT) that is due.

examples - it ignores details of the property such as the existence of an annex with its own front door;

it ignores the sellers situation - where they are forced to sell because their job is moving - so their buyers have no SDLT to pay;

It ignores the time when the property has been empty.

solicitors are not SDlT experts - they get their office junior to fill in the on-line HMRC portal that is also too simplistic and over-calculates the amount of tax due.

MSE really need to look into this subject -contact a specialist SDLT accountant for advice.

MSE calculator (if I am looking at the same one) says "Our calculator shows how much stamp duty is due on a MAIN RESIDENCE ONLY" (and it's not really surprising that it doesn't include the specialised situation regarding annexes). 

Can you actually give an example (with numbers) whereby the MSE calculator gives the wrong amount for the situation they state their calculator should be used for (let alone for 'most' people). 

Possibly the priority is actually for you to look at the subject. Do you understand how SDLT works? It is paid by a buyer. The seller's situation is irrelevant. (example 2)

What is the impact upon SDLT of a property having been empty (example 3)?

Finally I would suggest a fundamental flaw in your logic based on the impact and spread of this calculator. aEven if the MSE calculator is actually telling people to pay too much (I would question that anyway) that will not actually result in people actually paying too much SDLT (as implied in your first line). As said above who is relying on this one simple calculator?

grumiofoundation

Davesnave said:

babyblade41 said:

what a weird 1st post 

 I'd guess they have a personal interest of some kind; perhaps expertise in this area, though it's news to me that a seller's circumstances have any bearing on a buyer's SDLT. Why should this be? 

If it is this then they hid it very well !

gingercordial

davidfinch said:

Sadly the calculator produces by MSE is too simplistic, and results in most people overpaying the amount of Stamp Duty Land Tax  (SDLT) that is due.

Nobody is going to be overpaying SDLT based on the MSE calculator.  For the vast, vast majority of people, their solicitor does the SDLT calculation and payment and they are not going to be referring to MSE.

Usually I'm all for recommending people obtain proper, paid-for tax advice (as a tax adviser myself, and one who professionally does SDLT even!) but I can't understand the point of your post at all.

MSE_Laura_F

Hi @davidfinch,

Thanks for your post. I took your points to my colleague who looks after mortgages etc. He says, "Ours is a simple stamp duty calculator, and for niche situations it's best to consult a solicitor".

Best,

MSE Laura F

anselld

https://www.gov.uk/guidance/stamp-duty-land-tax-relief-for-land-or-property-transactions#employer-buys-employees-house

... but yes, I would guess the OP has a vested interest. 

Not sure why MSE even bother when there is a perfectly good calculator at gov.uk.