buying house LPT

G

glenni

Registered User
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Hi,

I'm closing the deal on a house on thursday but as far as i was aware i would be exempt from LPT for the next few years like everyone else. My solicitor has now told me that things have been recently amended and that i owe 128e to pay until november. Now i was talking to the vendor himself, and he also has to pay until November too as told by the tax office. Can anyone shed some light as to why both of us have to pay? and will i have to continue paying or be exempt from then for the next 2 yeras?

Any help appreciated.
 
The exemption for first time buyers was only until the end of 2013.
Was the house a new build, or what exemption did you think it came under?

It sounds like you solicitor is apportioning the charge for this year between you and the seller. This is in line with the Law Society guidelines.
 
ah makes sense now. i thought it was extended into 2014 if a house was purchased.
I wasnt sure what the story was, i obviously had the whole thing wrong i thought any house, first time buyer or not were exempt. she must be splitting it between myself and the vendor alright.
Thanks for clearing it up for me :)
 
Berni said:
It sounds like you solicitor is apportioning the charge for this year between you and the seller. This is in line with the Law Society guidelines.
Click to expand...

I was not aware that there were Law Society guidelines on this matter.

Have they any value unless the buyer agrees prior to agreeing to purchase or that it was a known condition prior to purchase.
 
They have a recommended wording to be added to the general clauses in the sale contract.
I expect you could try to remove it, if both sides agree.

[broken link removed]
 
I have seen these guidelines before and also some posts on AAM, where LPT was apportioned between vendor and purchaser, even where the purchaser was exempt.

This is contrary to the Law Society’s Guidelines:

“Section 127 of the 2012 act provides that any unpaid LPT and any penalties and accrued interest shall remain a charge on the property to which it relates. This statutory obligation on the vendor does not mean that the amount of the LPT already paid by the vendor cannot be apportioned between the vendor and the purchaser at closing. It is the view of the committee that this should be done, except where an exemption from LPT applies.”

and

“Where an exemption from LPT applies and the LPT will, therefore, either not arise (that is, new properties) or will not be apportioned between the parties (for example, purchaser is a first-time buyer), evidence of entitlement to the exemption should be furnished by the relevant party, if necessary in the form of a statutory declaration.”

[Emphasis mine]
 
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