stamp duty deadline

Mad_maxx

just wondering how long you have to pay the stamp duty on the purchase of a property , obviously it should be done as soon as possible after a deed is stamped but how long before levies will be imposed etc ?

Peregrinus

Mad_maxx wrote: »

just wondering how long you have to pay the stamp duty on the purchase of a property , obviously it should be done as soon as possible after a deed is stamped but how long before levies will be imposed etc ?

In general you have 44 days from the date of execution to pay the duty. After that interest may be levied and, if levied, it will be backdated to the date of execution. Plus there is a late filing surcharge of 5% of the duty (10%, if filed more than 92 days after date of execution).

But this grace period is not often the limiting factor. You can't register your property transaction until the transfer instrument has been stamped. For obvious reasons most people want to register their transactions as soon as possible (and, if the transaction is financed with a mortgage, the lender will insist on this). So very few people take advantage of the 44-day period; they stamp as soon as they can.

Mad_maxx

Peregrinus wrote: »

In general you have 44 days from the date of execution to pay the duty. After that interest may be levied and, if levied, it will be backdated to the date of execution. Plus there is a late filing surcharge of 5% of the duty (10%, if filed more than 92 days after date of execution).

But this grace period is not often the limiting factor. You can't register your property transaction until the transfer instrument has been stamped. For obvious reasons most people want to register their transactions as soon as possible (and, if the transaction is financed with a mortgage, the lender will insist on this). So very few people take advantage of the 44-day period; they stamp as soon as they can.

Thanks a lot, my mother is buying a house and its with cash so not the same urgency to pay

Thought it was thirty days myself

Victor

Mad_maxx wrote: »

Thought it was thirty days myself

Be careful to check calendar days against working days and allow enough time for processing.

If necessary, it may be worthwhile to take a short-term loan to avoid the late fees.

Peregrinus

Mad_maxx wrote: »

Thanks a lot, my mother is buying a house and its with cash so not the same urgency to pay

I's still pretty urgent. While your mother's title remains unregistered, there remains a risk that the vendors could fraudulently sell the property a second time to someone else or, perhaps less improbably, a creditor of the vendors' could register a claim on the property, or someone contesting their title to sell could register a claim.

You've paid a large amount of good money for this property. Dont' faff about. Register your title. Delay could be a very false economy. The risk of something happening before you do may be small but, if that risk does eventuate, the expense will be ruinous.

There's a reason why a lender would insist on immediate registration; they have a valuable interest to protect. So does your mother.

Claw Hammer

Mad_maxx wrote: »

Thanks a lot, my mother is buying a house and its with cash so not the same urgency to pay

Thought it was thirty days myself

It is 30 plus 14 giving 44.

From the Revenue Manual
"Stamp Duty law provides for a period of 30 days to timely file a return: in
practice, we allow a further 14 days before late filing and late payment charges
are applied)"