Stamp duty tax

[herts]

Hi,

I know that you have to pay the fee 30 days after completing on the property.
If you can’t you have to pay 3.25 per cent interest . Does anybody have any experience of how this works?.
Does the interest get added monthly or would I just be charged the full amount
For example £34k at 3.25 per cent is £1105 for a whole year so would I just get charged this amount or a pro rated amount if I paid in 6months?.
TIA

Stamp duty is normally paid on completion when you become the owner of the property so i dont understand your question?

Technically it has to be paid within 30 days but everyone usually pays on completion. If you don't have the money to pay it, should you really be buying a property? I imagine your solicitor would have major concerns about your ability to proceed if you say you want to delay payment for six months.

If you can't afford the stamp duty you can't afford the house. Your solicitor and possibly the bank lending the mortgage will want to see evidence of the funds you'll need to complete.

If you are buying with a mortgage, your solicitor will need to be in funds for the SDLT before you complete. Why won't you be paying on completion? Btw you will also be charged a penalty fee for late payment as well as the interest.

Stamp duty is normally paid when you complete but you actually have 30 days after to pay before you pay interest on the amount.
I’m looking for people that have deferred it.

Yes I know about the penalty it’s only a few hundred pounds.
I probably will have the money but just wanted to check the worst case scenario.
PLEASE ONLY RESPOND IF YOU HAVE NOT PAID THE DUTY ON TIME.

Ask your solicitor.

As a PP has said you need to discuss this with your solicitor, they may not be prepared to represent you if your are not able to pay this at completion.

Your solicitor won't complete the purchase unless you have put them in funds to pay the SDLT. You also can't register the property in your name at the Land Registry without the SDLT certificate.

This is definitely a question for your solicitor

If you are getting a mortgage then the mortgage company will insist that the SDLT & Land Registry fees are there before you complete so it knows that the property can be registered (and in order to register, the SDLT needs to be paid).

If you are buying cash then although solicitors would prefer to have the money up front it's essentially your risk and if you speak to them you may be able to pay it after completion. They are likely to want you to sound pretty sure though that you can pay it as there's no point buying it if you can't register it!

The answer about the penalty is that there's a flat fee and then interest for the number of days late the return & tax are submitted.

If a mortgage is involved you do not have a deferment option. The lender, and therefore the solicitor, will not allow it.

OP, another quick point - from 1st March, the time to pay the SDLT is dropping from 30 to 14 days.

Got notice today that the money I was waiting on is arriving next week so not a problem now.
Thanks for your help