Additional stamp duty deadline for Land Registry?

Additional stamp duty deadline for Land Registry?

8:46 AM, 14th January 2016, About 6 years ago 20

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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

by Chris Byways

11:50 AM, 15th January 2016, About 6 years ago

Reply to the comment left by "james pearce" at "15/01/2016 - 09:48":

We can minimise our tax
"1936 a landmark legal case was heard in the House of Lords (Inland Revenue Commissioners v Duke of Westminster [ 1936 ] AC1 (HL)). The Duke of Westminster won the case. The judge, Lord Tomlin, stated:

“Every man is entitled if he can to arrange his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure that result, then, however unappreciative the Commissioners of Inland Revenue or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax”

BUT LIKEWISE no doubt HMRC feel they can MAXIMISE TAX, how arbitrary if they could make many thousands by simply leaving all the applications in the Inbox until the 5/4/16. No it surely must be the definitive date of exchange?

by Anthony Endsor

11:57 AM, 15th January 2016, About 6 years ago

I can see this turning ugly in a few months time.
I wouldn't be at all surprised if the government had instructed HMRC to leave all land registrations until 5th April as you say. Except it might actually take 30 years to come to light under the freedom of information act, etc.
I can just see it now in April 2046:

'Former Chancellor George Osborne has been forced to apologise after admitting he told HMRC to wait until after the deadline date before dealing with Land Registry applications.'
Trouble is, by then of course, most people who it affects now will either be dead, or too old to care about it any more.

by David Lovegrove

13:27 PM, 15th January 2016, About 6 years ago

Reply to the comment left by "Samantha Butcher" at "15/01/2016 - 09:33":

Hi Sam,
It's at the end of the header before you open up the article .
I've no idea which seminar this originated from.

by David Lovegrove

13:34 PM, 15th January 2016, About 6 years ago

Reply to the comment left by "Anthony Endsor" at "15/01/2016 - 11:57":

I am not trying to alarm anyone Anthony but trying to establish if there is any truth in what I heard.
Know one else seems to have heard this rumour .
It's the sort of thing though as you point out that could happen and the devil is always in the detail but as the final bill is not being announced until March it's rather late for those of us who are trying to beat the deadline as we know it .

by David Lovegrove

13:40 PM, 15th January 2016, About 6 years ago

Reply to the comment left by "james pearce" at "15/01/2016 - 09:48":

I personally think you are correct Jim and I certainly hope so but keep your ear to the ground.
If this rumour was true I would have thought a number of other landlords with far more knowledge than me would have confirmed what I was relayed .

by Hazel de Kloe

14:27 PM, 15th January 2016, About 6 years ago

I, too, have not heard of any difference to the additional SDLT coming into effect until after the beginning of April on completions only of BTL property. That said, it wouldn't surprise me if the rumour was true and it may be a nasty surprise waiting to happen!

James, if you are doing a refurbishment project, as you suggest, which would incur an additional £12K if the ruling were actually to come into effect from the registration at Land Registry and not on completion, are you planning on holding the property? If not, then the extra SDLT should not be incurred anyway due to the fact that it is a Buy-to-Sell project and not a Buy-to-Let. Unless, of course, you are buying it with a BTL mortgage, in which case that may become a grey area and something your solicitor and accountant would have to work on!

Just wondered, as you may be worrying unnecessarily if you do intend to sell it straight away. 🙂

by Joe Bloggs

14:39 PM, 15th January 2016, About 6 years ago

THIS IS ALL BULLS*** BASED ON NOTHING...

by Si G

9:35 AM, 13th February 2016, About 5 years ago

I have some questions can anyone throw light on them please
1) I understand that someone moving home has up to 1.5 years to sell their previous home, will they need to pay the additional sdlt then get it back when home 1 sells.
2) Does the sdlt apply to individuals and ltd's i mean is it blanket (compared to the mortgage interest relief reduction which only applies to individuals)
3) I understand that property below 40k is exempt
4) Does the sdlt apply to plots for self builders ?
5) How do you envisage sdlt for 2nd homes being inplemented will it be a form filling exercise on the sdlt form ?
7) Does anyone have links to the draft legislation or other useful links, many thanks, Simon.

by Chris Byways

18:55 PM, 14th February 2016, About 5 years ago

Reply to the comment left by "Simon " at "13/02/2016 - 09:35":

Am I right in thinking that a mixed use property, for example
http://www.cottons.co.uk/current-auction.asp?lid=45263&ClientID=26&src=40
Or if not working:-
http://www.cottons.co.uk/current-auction.asp
Lot 15

is taxed at 1% of the total amount up to £250k

https://www.gov.uk/stamp-duty-land-tax/nonresidential-and-mixed-use-rates

And would any Mortage on the whole NOT be subject to the C24 Tenant Tax? IE can the whole or a proportion be deducted as a cost?

by Chris Byways

19:03 PM, 14th February 2016, About 5 years ago

Reply to the comment left by "Simon " at "13/02/2016 - 09:35":

I have some questions can anyone throw light on them please
1) I understand that someone moving home has up to 1.5 years to sell their previous home, will they need to pay the additional sdlt then get it back when home 1 sells.
Get a refund if sold within 18m

2) Does the sdlt apply to individuals and ltd’s i mean is it blanket (compared to the mortgage interest relief reduction which only applies to individuals)
Yes?

3) I understand that property below 40k is exempt
Yes.

4) Does the sdlt apply to plots for self builders ?
No?


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