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Costly Oversight: Call of Duty

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Research from TSB shows that around a quarter of first-time buyers are failing to take stamp duty costs into account when putting in an offer on their new home.

But the oversight is not limited to FTB's. Existing homeowners fail to factor in the stamp duty, with around 14% of those buying their second or third homes also failing to include the expense in their financial calculations.

Stamp duty can be expensive. TSB reveals that the average amount paid for stamp duty is over £5,000, equivalent to around 10% of the average deposit put down for a house purchase. For first-time buyers, stamp duty accounts for as much as 15% of the deposit, on average.

In the new regulatory world of 'managing client's expectations' it is essential that conveyancers do not take for granted that a buyer has calculated the relevant stamp duty.

2023 Update: Requirement 5.15 of the 2022 CQS Core Practice Management Standards provides that firms must have a “a procedure for ensuring that the practice provides a clear written SDLT (Stamp Duty Land Tax) calculation to the client at the outset”. This should be reflected in the firms Stamp Duty Land Tax Policy 

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