Additional stamp duty deadline for Land Registry?

by Readers Question

8:46 AM, 14th January 2016
About 3 years ago

Additional stamp duty deadline for Land Registry?

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Additional stamp duty deadline for Land Registry?

I am in the process of buying a second property (eighth actually) and will be “Completing” prior to 1st April 2016.deadline

I understood that this would mean avoiding the additional stamp duty tax BUT I was advised last night by a fellow landlord that NOT ONLY has a second property to be “Completed” by 1st April 2016 but it has to be ALSO on the land registry BY 4th April 2016.

Now I do not know if this information is factual or not , my solicitor has yet to receive guidelines on how the tax will operate and I can find no reference to the land registry bit anywhere on the Internet and the whole bill is still under consultation.

Land registry takes weeks if not months after “Completion” so if this is true any one trying to rush through a sale before 1st April 2016 may receive a shock at a later date.

Is there anyone out there that with any knowledge of this which I understand originates from a seminar on the Autumn announcement.

David



Comments

james pearce

10:15 AM, 14th January 2016
About 3 years ago

Thanks for posting that David.
That would be a serous blow as I'm in the process of purchasing a property for renovation and that would be a chunk of my profit.
I will watch this thread with interest.
Jim.

Anthony Endsor

11:04 AM, 14th January 2016
About 3 years ago

Oh. I'm glad this has been pointed out.
I would have been caught out also as an Estate Agent has contacted me regarding a February auction, saying I should buy now to avoid the new stamp duty.
Just shows what agents are like if they'll stoop that low to get a sale. What a con.

Joe Bloggs

11:08 AM, 14th January 2016
About 3 years ago

I THINK YOUVE BEEN MISLED. THE HMRC DEADLINE FOR PAYING SDLT IS UNCONNECTED AT PRESENT TO LR REGISTRATION AND CANT SEE THAT IT WOULD BE PRACTICAL OR FAIR FOR SUCH A CHANGE.

Samantha Butcher

11:48 AM, 14th January 2016
About 3 years ago

Joe is right, it's the day you complete that matters for the tax not the day you register at Land Registry.

David Lovegrove

11:59 AM, 14th January 2016
About 3 years ago

Joe,
It certainly would be unfair and I certainly do not know if this is fact or speculation but it's information that was apparently passed around a recent seminar and my reason for posting the article was to enquire if anyone else had heard of this as I cannot find any direct reference to it.
I am off to auction next week and will be bidding in the knowledge that there maybe a possibility of receiving a bill for second property stamp duty in due course.

David Lovegrove

21:46 PM, 14th January 2016
About 3 years ago

This is money web site confirms second properties need to be on the land registry. By 4th April 2016 !!

james pearce

23:06 PM, 14th January 2016
About 3 years ago

Hi David,
Do you have the link?
many thanks,
Jim.

David Lovegrove

8:56 AM, 15th January 2016
About 3 years ago

Hi Jim,
I typed into google ' is land registry dates linked to second property stamp duty'
One of the top results was -
http://Www.this is money.co.uk>article-3394231
The comment is to be found in the result headline rather than when you open the article.
Having read it again I am wondering if 'this is money' have used my post and copied it here as I cannot find any other reference to it.
It seems crazy that second property stamp duty will be implemented in April when it is still under consultation until Mid.Feb. and undoubtably some tweaking will be made before the bill becomes law.
Solicitors have not received details of how to operate the scheme at this stage.

Samantha Butcher

9:33 AM, 15th January 2016
About 3 years ago

I've read that article twice and can't see any reference to having to register wiht LR before 4th April --- Where is it?

I've spoken to a friend who has read up on the proposals and he assures me that only one tax charge can be made and that is at the date of completion, registration date isn't relevant.

It would seem that the journalist has things wrong.....

Solicitors who read the consultation will know that there are suggested changes to the SDLT Return that will allow this charge to be calculated. Whether HMRC can update the online Return service in less than 6 weeks remains to be seen!

james pearce

9:48 AM, 15th January 2016
About 3 years ago

Thanks David,
i personally think it highly unlikely that it will be the date the deal hits land registry but it has me concerned. As the property I'm buying to renovate is 400K that would be an extra 12K in tax.
Simply not worth bothering if this is the case as thats a chunk of my profit!
I will be keeping a very good eye out and post if I manage to find out any more info.
Regards,
Jim.

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