The Importance of Submitting  Stamp Duty Land Tax (SDLT) and Registering Property in a Conveyancing Property Purchase.

Two key steps in the conveyancing journey are submitting the Stamp Duty Land Tax (SDLT) and registering the property with the Land Registry. 

1. Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) is a tax that applies when you purchase property or land over a certain price in the UK. It is a very significant step in the conveyancing process.

Why is it important?

• By law, anyone purchasing a property must submit an SDLT return to HM Revenue & Customs (HMRC) within 14 days of completing the transaction, even if no tax is due. The failure to do so can lead to fines and interest charges.
• Submitting the SDLT ensures that the tax has been paid, which is a requirement for the buyer’s solicitor to complete the transaction.
• The SDLT return also serves as proof of how much tax is due based on the purchase price. The rates vary depending on the value of the property.

2. Registering the Property

Once the transaction has been completed and the necessary taxes are paid, the next step is registering the property with the Land Registry.

Why is it important?

• Registration with the Land Registry is proof of ownership. The process ensures that the buyer’s name is registered as the legal owner of the property.
• When the property is registered, it ensures that the buyer’s rights to the property are protected. If a mortgage has been taken out to purchase the property, the Lender will want to ensure their charge is formally registered.
• Having the property registered means that buyers, sellers and lenders can all have clarity in the legal ownership of the property. This will make it easier in the future when selling or remortgaging.

Submitting SDLT and registering the property are a vital part of the conveyancing process. These steps help establish the legitimacy of the transaction, protect all parties involved, and ensure all legal requirements have been complied with. Whether you’re a first-time buyer or a property investor, understanding these steps will lead to a smoother, more secure property transaction.

For any further guidance, don’t hesitate to contact nrobert@astonbond.co.uk.