Stamp Duty Land Tax is a tax on the purchase price of land and buildings. If you buy either a freehold or leasehold property and the purchase price is more than £125,000 you must pay SDLT. This is on a sliding scale of between 1%-15%.
As the buyer of the property you are responsible for completing the Land Transaction Return and paying the SDLT. In practice your solicitor will handle this for you – preparing and submitting the tax return to HM Revenue. To be able to do this your solicitors will ask you to sign a Power of Attorney appointing them to act as your attorney in this matter.
Leanne Lewis, Conveyancing Executive, says “It is vital not to under- estimate the importance of supplying correct information for the Land Transaction Return (LTR) as the Inland Revenue will issue penalties for late delivery and false information. Serious misdeclarations or fraudulent returns can lead to prosecution, fines and imprisonment. You should check the form very carefully and ensure a correct National Insurance number is entered before returning it to your solicitor.”
Stamp Duty Land Tax is a personal tax and is the responsibility of the person/s buying the property in the same way as other personal taxes, such as income tax. If the LTR has not been filled in accurately or information is missing from it, it must be re-lodged within 28 days of when the tax becomes payable – normally the date of completion. If there is more than one buyer for the property the liability for the payment of SDLT becomes ‘joint and several’. This means that all the buyers have a potential personal liability for the payment.
For a free initial meeting please call 01202 499255 and Leanne or a member of her team will be happy to discuss any questions you may have.
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