SDLT/Stamp Duty - The new PPI?

Just when you thought those nauseating radio ads for PPI were a thing of the past, just wait until this little beauty starts to pop up.

Back in the day Stamp Duty was pretty simple even for the most number crunched solicitor to deal with. Work out the price and then a simple calculation to work out how much to add to the tax coffers. Nowadays we have a slab system for calculating and even if you find a decent calculator there are a myriad of complexities that can trip up even the most savy solicitor.

Getting the calculation wrong can have dramatic effects as there are different calculators for commercial and residential property. The poor old solicitor is one of the few professional in the transaction that does not visit the property and so are reliant on what the client, estate agent or surveyor tells them. Wrong information or lack of information could lead to a tax overpayment or worse an under payment and those nice people at HMRC asking you kindly to pony up the tax with a little interest on top of course!

The additional tax for second homes is undoubtedly where most people will come across the complexities. Buying a property in your sole name but with a joint mortgage with someone who owns a property is one such case brought to my attention recently leading to an initial tax bill of £24K being reduced to £5K. Most clients think that solicitors are tax experts when in fact they use search engines to calculate the rates.

It certainly is worthwhile asking your solicitors about exemptions or seeking separate tax advice if your transaction merits it.

Otherwise we'll have to listen to more of that endless drivel on Capital!