Stamp Duty

[stevieb]

I am looking for a small bit of advice.

I am currently involved in a purchase of a property while selling my own.

Neither are restricted to being in a chain as the property i am selling is vacant and my house is vacant as i am currently renting.

I am looking to complete by the end of november, but i am going to be slightly short on the cash due to HMCE.

My question is do you have to pay the Stamp duty fees to the solicitor to pay before competion?? OR can i pay my stamp duty fees within 30 days of the sale being completed.

If i can carry this out within 30 days of completing then it would help a great deal as the Stamp Duty i need to pay is £10k. Would a reasonable solicitor fail to complete is i have not filed my stamp duty forms either before or on the day of completion??

Thanks

Edited by stevieb on Sunday 24th September 18:17

[david_s]

Every time I have bought a property I have had to pay stamp duty on completion, no stamp duty = no completion = no purchase.

[Stephanie Plum]

david_s said:

Every time I have bought a property I have had to pay stamp duty on completion, no stamp duty = no completion = no purchase.

[BigAlinEmbra]

You should be allowed to leave it the 30 days before payment, but if you don't have £10k when purchasing the property, how are you going to raise it in a month?

[stevieb]

BigAlinEmbra said:

You should be allowed to leave it the 30 days before payment, but if you don't have £10k when purchasing the property, how are you going to raise it in a month?

On completion of the puchase i will need to provide to my employer the amount of Stamp duty payable in a form of official letter from the solicitors. This will then be paid/transfered to the solicitors by my employer on recieving this letter. circa 7 to 10 days to tranfer the money.

I am also selling my house in the north but there is no completion date set yet, so i am not relying on this money until it is cleared funds in the bank.

I have read on HMRC that i have upto 28 days to file the required forms and send payment. if this is done electronically this cfan be left until day 27. but i am only looking for 10 days.


Thanks Steve

[smirnoff]

stevieb said:

BigAlinEmbra said:

You should be allowed to leave it the 30 days before payment, but if you don't have £10k when purchasing the property, how are you going to raise it in a month?

On completion of the puchase i will need to provide to my employer the amount of Stamp duty payable in a form of official letter from the solicitors. This will then be paid/transfered to the solicitors by my employer on recieving this letter. circa 7 to 10 days to tranfer the money.

I am also selling my house in the north but there is no completion date set yet, so i am not relying on this money until it is cleared funds in the bank.

I have read on HMRC that i have upto 28 days to file the required forms and send payment. if this is done electronically this cfan be left until day 27. but i am only looking for 10 days.


Thanks Steve

You are right and your solicitor does have 28 days to pay, but it is down to your solicitor to trust you, maybe a letter to the solicitor explaing they will pay stamp duty might let him do it.

[BigAndy69]

Sorry man but you've got to give your solicitor the Stamp Duty prior to completion. It is true that you have 28 days to pay the stamp duty after completion but the solicitor is under an obligation to ensure that he has the cleared amount in his client account prior to completion. If the solicitor completes how can he be assured that you're trustworthy and will pay him the money within 28 days? If you dont pay the firm will be liable for the debt, have to pay the Inland Revenue, then sue you. But the main reason is that if you are getting a mortgage, the solicitor is under a duty to the Lender to make sure he has the amount for stamp duty prior to completion. If you want proof visit the Council of Mortgage Lenders website and read the CML handbook part 1.

Trust me i'm a conveyancing solicitor!

Andy

Edited by BigAndy69 on Tuesday 26th September 16:51