Paying Legal costs of vendor
I enter into negotiations to purchase a property marketed for sale at £415,000. The outcome is that the vendor lowers the price to £400,000 and I agree to pay his legal costs. On completion I pay the £400,000 plus his legal costs of £7,000 (including VAT).
The chargeable consideration for this transaction is £407,000 (purchase price plus vendor’s legal costs). SDLT is charged on what has been given for the property. Therefore:
The SDLT due on £407,000 = £10,350.
(Payment by a tenant in discharge of any of the obligations noted above does not count as chargeable consideration).
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||2500|
|Above 250,000 and up to 925,000||5||7850|
|Above 925,000 and up to 1,500,000||10|
|Total SDLT due||10350|