To ask for urgent stamp duty help

[lastqueenofscotland]

Posting for traffic
Bought my first home this year. Under the FTB stamp duty limit but not the normal one.
Advised my solicitors I was a first time buyer.
Got a letter about a month after moving in about owing stamp duty and I had to fill in a form if I didn’t think I was eligible which I did in good time and sent off.
Today I’ve got a letter saying they are sending bailiffs round as I’ve not paid my stamp duty
What can I do they don’t seem to have a number just a debt line that isn’t open till Monday.

Speak to your solicitor on Monday. They will or should have sorted this out.

This sounds doggy!

Solicitors deal with stamp duty you don't so anything.

Are you sure this isn't a scam?

Under the FTB stamp duty limit but not the normal one.

What does this mean? Can you give facts and figures and knowledgeable posters (not me!) will be able to see what might be the problem.

Did you talk to your solicitor when you got the form through?

It’s definitely HMRC I’ve checked the account numbers etc

I bought the house for £175k and was a first time buyer

But does it sound like my solicitor hasnt done something they were meant to have?

OP did you exchange contracts etc to buy the house before the stamp duty rule change or after?

Also (just a guess from your name may be totally off base!) are you in England /N. Ireland or Scotland? Scotland first time buyers still have to pay a degree of stamp duty for a house of that value whereas in England / Northern Ireland there would be none

Well yes, it does sound as if your solicitor had overlooked something if you’re being hounded by HMRC. Call them first thing Monday (HMRC & solicitor).

After I bought it in September
I am from Scotland but bought in the north of England

Ok I presume you mean first time buyers stamp duty relief.
You need to speak to both your solicitor and HMRC. Firstly speak to the solicitor about what paperwork was sent off.
There is a guide to claiming relief here see page 13 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachmentdata/file/751718/StamppDutyLanddTaxrelieffforfirstttimebuyerss-guidanceenote.pdf
Speak to HMRC and explain that you do not owe stamp duty as you are a first time buyer and as far as you know, you have filled out and sent off the paperwork to confirm this. Ask them to check their system, and ask them what they want you to send off AGAIN to ensure that this is recorded correctly. Make sure they confirm anything further you send them is received.
Make sure you phone HMRC on their official number see gov.uk website not anypaperwork you have been sent in case it is a scam.

Even if no duty is payable the stamp duty form still needs to be submitted and an SDLT5 gained. This is done online through the HMRC portal by your Solicitor. It looks as though, because no duty was payable, the Solicitor didn’t submit the form. It still needs submitting regardless of the duty payable. Ring your Solicitor asap.

@lastqueenofscotland did you buy alone or with a partner? If so you must both be first time buyers to qualify for the stamp duty exemption

If you are both FTB or you bought alone then it's a fault on your solicitors part and with it being the weekend unfortunately you can only start to sort it on Monday which I know won't help with the stress

Usually this is dealt with by the solicitor we paid the stamp duty and solicitors fees all together and then they dealt with the rest, then sent confirmation when it was done - did your solicitor not do this?

Oh - don’t know about this first time buyer relief thing though maybe different process?

I bought alone
Got a Monday on the phones then!

@lastqueenofscotland definitely! You shouldn't have had to do anything at all for this it should all have been your solicitors responsibility

Have you got a copy of your updated title showing you as the registered proprietor? If your solicitor hasn't submitted the sdlt return then they won't have got an sdlt5. You need the certificate to apply to the land registry...

Did your solicitor provide you with a copy of the submitted return?

All sounds v annoying.

Your solicitor probably hasn't selected the FTB relief option when submiting the SDLT to HMRC.

You still have to submit one (your solicitor on completion will have done it) but you have to specifically select the FTB option. If your solicitor didn't do this, they will write to you asking for payment.

I know it's scary but it happens all the time. Ring your solicitor on Monday and notify them. They can simply write to HMRC and inform them of their error. They will then likely tell you to discard any further letters as HMRC often have a bit of a backlog.

It has been many years since I did conveyancing - however, what would happen is that after completion the solicitors would pay the SD and then send evidence of payment (SDLT something form) along with the property transfer form (eg TR1 form) to the Land Registry. Without the stamp duty having been paid correctly the transfer of property into the buyer’s name would not take place at the Land Registry and you would not get your details on the deed (or official copy of the register). Even if no SD was payable, the SDLT form would need to be done and sent with the TR1. Did you get an official copy of the register with your name as Owner from you solicitors? If you did, I’d say it’s most likely a scam.

Also would HMRC not prosecute/litigate first and obtain some order of payment and the. send bailiff over if still not paid? You don’t jump from a demand to threat of sending bailiff over.

Of course things may have changed since I did conveyancing.

livingthegoodlife if HMRC are asking for payment then OPs solicitor has definitely submitted the SDLT already and received the SDLT5.

They just won't have selected the right option (FTB relief) when doing so meaning HMRCs system thinks OP needs to pay. Her solicitor just needs to inform HMRC of the error.

OP as I said above, it happens alllllll the time in conveyancing. We get a few a day where there's been admin errors which need rectifying. It's scary for you as the Client to receive the letters but it's an easy fix for your solicitor don't worry.

RedRakham you receive the SDLT5 (which is sent to land reg to register the prop) as soon as they submit it. You don't need to have made payment first.

If HMRC are aware of your purchase (which they are because they've written to you) then your solicitor has already submitted the SDLT form and received the SDLT5 and likely registered already.

Land reg do not check that SDLT has been paid.

Stamp duty relief applies to FTB on purchases made on or after 22 November 2017, and where the purchase price is no more than £500,000 A’s far as I am aware.

You’d pay 0% on houses bought for up to £300,00 and 5% on the difference up to 500k.

If you bought September then you will have to pay stamp duty under the old regulations, so 0% up to 125k and then a percentage on the difference up to your purchase price.

Bigpizzalover the OP bought in September this year so far as I can tell meaning she will not need to pay SD

Oh sorry I read it as bought last year, to claim the relief the SDLT still needs returning with the relief code. Def one for the solicitors to sort.