When exactly is stamp duty payable?

A

AlastairSC

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We're in the process of buying, but holding off signing until the stamp duty issue becomes clearer. At what point in the conveyancing does the solicitor become legally required to collect stamp duty and hand it over to the state?
When we sign? when we exchange? Closing date? Funds drawdown?

Can we sign contracts and hold off until the stamp duty becomes clear?
 
As far as I know it's due c. 30 days after the transaction closes and I think the solicitor will require the SD to be paid to them on closing normally.
 
I'm really shocked to think that solicitors are entitled to hold on to the stamp duty and leave it sitting in their account for the 30 days especially now as interest rates increase. I am currently buying a house on which stamp duty of around 72k will be payable. Surely I am entitled to keep that money in MY account till it falls due. I certainly intend to TRY and keep it in my account. Any advice Clubman?
 
Personally I pay it direct to revenue myself. Last time my solicitor wanted me to give him stamp but he was unsure how to even calulate it correctly. Told me to give him more than enough and he would give me back the change.

Feck that - I rang them myslef and got a calualtion over the phone and paid myself.
 
"Personally I pay it direct to revenue myself."

"Surely I am entitled to keep that money in MY account till it falls due."

Only if you don't have a mortgage. If you have a mortgage, the solicitor has agreed with your lender that they will not release the loan cheque until the purchaser/borrower has put them in funds ( including stamp duty) to complete registration. Most solicitors have zero interest ( pardon the pun) in hanging onto client's money and, in the interests of speed and efficiency, generally pay the duty and lodge title for registration a.s.a.p to get the file completed.

If you don't have a mortgage, you can hold your own stamp duty but it still has to be paid.

mf
 
maryanne40 said:
I'm really shocked to think that solicitors are entitled to hold on to the stamp duty and leave it sitting in their account for the 30 days especially now as interest rates increase. I am currently buying a house on which stamp duty of around 72k will be payable. Surely I am entitled to keep that money in MY account till it falls due. I certainly intend to TRY and keep it in my account. Any advice Clubman?
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I don't know that solicitors generally keep the SD money on deposit in an interest bearing account until the very last day that the SD is due to be paid. You could always ask your solicitor what their arrangements are in this regard and ask them if they will refund (or credit off their fees) any interest earned in the meantime? The worst that can happen is that they say no I guess?
 
Thanks for all the replies....yes it makes a bit more sense now. I can see that all the deeds and registration have to be completed in full and they can't risk you heading off on a world cruise with the stamp duty money in your hot little hand!!
 
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