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What tax return is due on purchase of private home

What tax return is due on purchase of private home

My client is selling his only property and buying another to live in. Solicitor says that a tax return is due - 70 questions - he wants to charge exorbitant fee. Client asks if I can do it. What return are we talking about?  There is no Capital Gain or SDLT - I am clearly ignorant!

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By Jakarmi
01st Mar 2016 12:48

Does the client live in the property he is selling?

If not, what has he used the property for during his period of ownership?

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01st Mar 2016 13:05

He has lived there with his wife that's all.

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01st Mar 2016 13:33

He's not confused by the new rules for non residents is he?

see here - https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-resid... - or indeed is the client non resident?

 

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By Jakarmi
01st Mar 2016 13:33

Can't see why a Tax Return is due

Ask him to ask the solicitor why a Tax Return is due.

I recently bought a new property and remortgaged my old one. The solicitor told me I'd need to pay £3k stamp duty on the property I was remortgaging. When I showed him the letter and asked why I was paying stamp duty on the home I was retaining he quickly took the letter off me saying there must have been a mix up. The legal profession isn't all it's cracked up to be.

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01st Mar 2016 14:10

Lawyers are not accountants

Don't buy fish from your butcher, don't get your lawyer to do your tax return, don't get an accountant to build your garage.

Lawyers, for the most part, don't know a great deal about accountancy and (with a few notable exceptions) tax. If it sounds like they're talking b*llocks in your professional opinion then they probably are.

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01st Mar 2016 14:32

I suspect it is something linked to a CPD course he did

and confusing the new 30 day return & pay for non residents selling residential property since 5/4/2015 - as linked above - so one might give him credit for remembering there was something and warning of the possible need, even if it may have bee misplaced

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