Account to your clients for Stamp Duty

News

17 September 2020

The Government announced in July an eight-month temporary cut in Stamp Duty Land Tax (SDLT), with no charge on any residential property transactions with a value of less than £500,000. 

This would result in an average saving of £4,500, (and a possible total saving of £15,000 per transaction), which the Chancellor hoped would incentivise the property market during the holiday, with momentum continuing after it ends on 31 March.

However, we are concerned that some firms have failed to account to their clients because the SDLT is no longer payable. We expect law firms to have informed their clients whether or not stamp duty is payable.

If you are a law firm that was holding client money to cover SDLT, you should take steps to return that money to the client if you are satisfied that there is no longer any proper reason to hold those funds.

If you have any queries, contact our Ethics Guidance helpline.