Delaying SDLT and paying the fine

Delaying SDLT and paying the fine

18:59 PM, 8th July 2024, About 2 weeks ago 3

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I’m buying a derelict property to refurbish and running pretty tight on cash for the first 3 months of the project while we wait on a sale of an old btl going through.

Reading through the HMRC SDLT guidance it looks as though you can pay up to 3 months late and pay a £100 fine, 6 months £200 fine.

I’ve been told I’ll also pay interest at BoEBR + 2.5% which I’m fine with as our main lending rate on the project is about 10% anyway.

I generally use two solicitors, one has said it’s not an option. The other has said SDLT is self-assessed, pay what you want, and be ready for the fine when it’s not enough.

Has anyone had any experience with this?

Thanks

Phil Irwin


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Jack Scott

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21:31 PM, 8th July 2024, About 2 weeks ago

I took 18 months to fully pay SDLT when I purchased a house with cash ~4 years ago. when chased by HMRC I then agreed to pay £500 per month for 6 months. At the end of the 6 months HMRC agreed a final 6 months installment. At the end of that 6 months a very final 6 months was agreed. I paid the full amount . I paid the interest. Cheapest loan I have ever had.

The only way I was able to do this was because no lender was involved and I told my solicitor I would deal with it .

If a mortgage company had been involved , the purchase wouldn't have been completed until the monies were on account as it would have increased the mortgage company's risk.

peter styles

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10:15 AM, 9th July 2024, About 2 weeks ago

i believe that you can actually reclaim sdlt on derelict properties and get all your money back ..so pay it and reclaim it

havens havens

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19:08 PM, 9th July 2024, About A week ago

It sounds like you're in a bit of a tight spot with the SDLT deadlines and cash flow during your property refurbishment. From what you've learned, there's some flexibility in paying SDLT late, but it comes with penalties and interest.

Considering the advice from your solicitors, it might be worth clarifying directly with HMRC or consulting a tax advisor specializing in property transactions to get a clear plan.

In the meantime, having a solid financial strategy and maybe exploring short-term financing options could help bridge the gap.

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