Estate Agent Introductory Fees
I attended an open day to view a flat. I made an offer of £175,000 for the flat. I was told that the seller would accept my offer only if I agreed to pay the estate agent a fee to secure the property. The fee would be £2,500 (including VAT), payable on completion, for “introducing” me to the property. I agreed to this before contracts were exchanged.
The chargeable consideration given for the property is £177,500 (purchase price plus estate agent introductory fee).
The SDLT due on £177,500 = £1,050.
Here is a breakdown of how the SDLT was calculated
|Purchase Price Bands (£)||Percentage rate||SDLT due (£)|
|Up to 125,000|
|Above 125,000 and up to 250,000||2||1050|
|Above 250,000 and up to 925,000||5|
|Above 925,000 and up to 1,500,000||10|