Stamp Duty

RubyBish

What is the legal timeframe for payment of stamp duty on a house purchase?
Is it due on completion day, a week after completion? Or can it be deferred to the end of the tax year?

If it can be deferred does it have to be held by a Solicitor?

theGrinch

generally its paid on completion and collected by your solicitor.

there are zero rated transactions. all property less than £120k is zero rated and properties in disadvantaged areas of up to £150k (refer to inland revenue website).

RiskAdverse100

Stamp Duty Land Tax is payable no later than 30 days after the effective date of the transactions. In nearly all cases this is the same as the completion date of the purchase.

If there is a mortgage involved then the lenders will require the solicitor acting for them to be in funds for the tax payable when completion takes place.

As the purchase cannot be registered at the Land Registry without a certificate issued by Customs & Revenue showing that tax has been paid, most sensible solicitors will pay the tax as soon as completion has taken place.

Customs & Revenue are not particularly good at issuing these certificates promptly and problems can arise if you delay sending them the cheque!

If your solicitor doesn't get you to sign before completion the Return that is sent to Customs & Revenue along with the tax cheque following completion and doesn't make sure you put him in funds for the tax then you might want to be careful that you do not end up being charged penalties for paying the tax late.

RiskAdverse100