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Badhairday

Did Hmrc Not Keep Track Of Property Purchases Until Now?

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Routine emails from my accountant detail changes to tax legislation. The latest email I got had the following statement:

'Later this year your solicitor, or property conveyance person, will be required to file new forms with the Stamp Duty Land Tax Office when you buy a property. The regulations allow old forms to be used, or the new forms, from 1 April 2011 to 3 July 2011. After 4 July 2011 only new forms can be filed.

No cause for alarm thus far.

Unfortunately the devil is in the detail!

The new forms require that each lead purchaser provide the following unique identifier when completing the forms:

• Individuals - their National Insurance number, or

• Companies and Partnerships - their Unique Tax Reference (UTR) or VAT registration number.

Wonder what HMRC will do with this additional information? No doubt they already have, or will be, setting up tracking processes that link property purchases to the lead purchaser’s tax file.'

DOes this mean that until now HMRC was not keeping track of sales and purchases? such inefficiency is hard to believe.

Edited by Badhairday

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Routine emails from my accountant detail changes to tax legislation. The latest email I got had the following statement:

'Later this year your solicitor, or property conveyance person, will be required to file new forms with the Stamp Duty Land Tax Office when you buy a property. The regulations allow old forms to be used, or the new forms, from 1 April 2011 to 3 July 2011. After 4 July 2011 only new forms can be filed.

No cause for alarm thus far.

Unfortunately the devil is in the detail!

The new forms require that each lead purchaser provide the following unique identifier when completing the forms:

• Individuals - their National Insurance number, or

• Companies and Partnerships - their Unique Tax Reference (UTR) or VAT registration number.

Wonder what HMRC will do with this additional information? No doubt they already have, or will be, setting up tracking processes that link property purchases to the lead purchaser’s tax file.'

DOes this mean that until now HMRC was not keeping track of sales and purchases? such inefficiency is hard to believe.

Yes they did. Only the form the solicitor uses to inform them has changed.

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Yes they did. Only the form the solicitor uses to inform them has changed.

Obviously they werent doing it properly. i dont remember being asked my NI number when i bought 10 years ago.

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Obviously they werent doing it properly. i dont remember being asked my NI number when i bought 10 years ago.

I think that they might be looking for multiple property owners who may be 'forgetting' to declare all that rental income.

Plenty of those in the BTL world

Edited by stormymonday_2011

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Even that sounds a bit strange. How would a foreign buyer have an NI number?

Individual lead purchasers will need to give their National Insurance number and date of birth. Companies should use their company Unique Taxpayer Reference (UTR) or VAT registration number, whilst partnerships should use their UTR or VAT registration number.

If none of the above references are available use a tax reference stating the country or place of issue. If no tax reference is available use another unique reference, such as passport number or driving licence number stating the country or place of issue.

Lead purchasers who don't have any of these unique identifiers will need to contact the Stamp Taxes Helpline to obtain a reference.

http://www.hmrc.gov.uk/sdlt/get-ready-for-change.htm

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Oh I think not. Every thing is logged.

Yes but before the new system it would have required manual checking of the data, it can now be done automatically (easier and cheaper). The have apparently had the computer system for about a year so it will take a while for the entertainment to start.

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Yes but before the new system it would have required manual checking of the data, it can now be done automatically (easier and cheaper). The have apparently had the computer system for about a year so it will take a while for the entertainment to start.

The way it worked previously was that the Tax Inspector asked the VOA to look up a taxpayers property transactions on the VOA database. If the IT works the new method should be much more efficient. Unfortunately given the governments' record in IT procurement that is a big if.

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Guest eight

The way it worked previously was that the Tax Inspector asked the VOA to look up a taxpayers property transactions on the VOA database. If the IT works the new method should be much more efficient. Unfortunately given the governments' record in IT procurement that is a big if.

you have to supply details of your own income to HMRC in order to claim tax credits. You would think they might be able to tell you, not the other way around.

eight

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you have to supply details of your own income to HMRC in order to claim tax credits. You would think they might be able to tell you, not the other way around.

eight

Mad is it not. I once had a truly surreal telephone conversation with a lady at HMRC(HMIT as it was then). I had put the wrong number on a tax return. She knew what the right number was. Could she not just write it in in biro I said. No she said, legally I had to be the one to write it down. How would it be, I suggested, if she told me what the number was and I wrote it on a piece of paper signed it dated it and faxed it to her. That she said would be fine so thats what we did. Bizzarre.

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you have to supply details of your own income to HMRC in order to claim tax credits. You would think they might be able to tell you, not the other way around.

eight

Ignorance is bliss. Of course they know what and whom, it's just easier and more lucrative to have you do the reporting.

File a late return, get a penalty.

File and incorrect return, get a penalty.

Miss the return, get penalty.

Forget to tick a box, you miss your tax credit.

Forget to tick a box, miss out on a refund.

Have a tattle-tale system in place, neighbours grass up each other, penalties.

Not bad for a days work if you are a tax collector.

Plus it creates work, for accountants, auditors, bookkeepers, solicitors, data entry clerks, software programmers, the judicial system, the legislature, etc.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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