SDLT

Gam2015

If i time my purchase home to complete on a Friday and the one I’m selling on the following Monday would i still need need to pay SDLT and then claim a refund or would i be able to not pay it? As by the Tuesday i would still only own one house again. Just a thought really. 

Slithery

I assume that you are talking about the additional SDLT rate, not just the basic rate which will be payable either way?

Do you need a mortgage to purchase the new property?

If so then part of your solicitors terms with the lender will require them to have all of the required funds (including the SDLT) in their account before you can complete.

If this is a cash purchase then technically it's up to you to declare and pay the SDLT within 14 days of completion - If you then manage to complete the sale of the original property before the 14 days are up then I believe that no additional SDLT will be due.

But I'd wait for @SDLT_Geek for a definitive answer.

canaldumidi

Slithery said:

Do you need a mortgage to purchase the new property?

If so then part of your solicitors terms with the lender will require them to have all of the required funds (including the SDLT) in their account before you can complete.

If this is a cash purchase then technically it's up to you to declare and pay the SDLT within 14 days of completion - If you then manage to complete the sale of the original property before the 14 days are up then I believe that no SDLT will be due.

But I'd wait for @SDLT_Geek for a definitive answer.

I think Slitery is basically right, though quite possibly, provided you are using the same solicitor for your purchase and subsequent sale, and you've exchanged contracts on your sale, he might be happy to Complete on the purchase, wait for the sale, and then submit the SDLT without the additional 3%.

SDLT_Geek or your solicitor will give more reliable answers though!

user1977

canaldumidi said:

Slithery said:

Do you need a mortgage to purchase the new property?

If so then part of your solicitors terms with the lender will require them to have all of the required funds (including the SDLT) in their account before you can complete.

If this is a cash purchase then technically it's up to you to declare and pay the SDLT within 14 days of completion - If you then manage to complete the sale of the original property before the 14 days are up then I believe that no SDLT will be due.

But I'd wait for @SDLT_Geek for a definitive answer.

I think Slitery is basically right, though quite possibly, provided you are using the same solicitor for your purchase and subsequent sale, and you've exchanged contracts on your sale, he might be happy to Complete on the purchase, wait for the sale, and then submit the SDLT without the additional 3%.

If there's a lender involved the solicitor would be taking a risk in doing that, as the additional rate would have to be stumped up if the sale didn't complete (or was delayed).

Slithery

canaldumidi said:

... provided you are using the same solicitor for your purchase and subsequent sale, and you've exchanged contracts on your sale, he might be happy to Complete on the purchase, wait for the sale, and then submit the SDLT without the additional 3%.

I would have assumed that this is one of those things that isn't up to the judgement of the solicitor, but rather written into their contract with the lender.

Any conveyancers here that can comment?

canaldumidi said:

SDLT_Geek or your solicitor will give more reliable answers though!

I'd trust @SDLT_Geek more than a solicitor that only does conveyancing any day as they usually provide links to the actual legislation... It's usually not part of a standard conveyancers remit.

SDLT_Geek

HMRC confirm in their guidance by way of concession that if the sale of the old home completes within 14 days of the purchase of the new home and before the land transaction return is completed, then there is no need for the extra 3% to be paid and reclaimed: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09805 (under the heading "the second situation").

As others have said, conveyancers are under duties to their lenders to pay the SDLT promptly.  Some conveyancers will accommodate the HMRC concession on the basis that they have enough funds to pay the 3% anyway and are authorised to submit a return and pay the increased tax if the sale of the old home does not go through as swiftly as expected.

Slithery

Don't you just love it when a thread comes together