A recent article refers to solicitors having to sign the stamp duty land tax returns after their clients. This is simply not the case (see [2004] Gazette, 15 July, 5). The return is a tax return by the client, not a tax return by the solicitor.


This said, there are a number of problems with the system. In particular, the tax return form itself is defective. Property solicitors will no doubt have noticed that the Inland Revenue requests the e-mail address for the seller's agent, but not that of the buyer's agent. A minor omission, no doubt.


More importantly, the Revenue advises that the preferred form of payment is by direct credit to its bank account. However, if payment is made in this form there is no entry on the tax return to notify the Revenue of this. I have had a number of tax returns returned to me without being processed where payment has been made by direct credit, and have finally had to request that the returns are manually dealt with by one of the stamp offices.


The issue regarding solicitor liability for payment of the tax and fines is not so much related to the Revenue as to the Land Registry. Whereas with the old system solicitors completed the forms and paid the tax, and it was thus their fault if they failed to do this within the required time periods, now the forms must be signed by clients. If clients delay in signing the forms and returning them to their solicitors, then the solicitors can end up being in breach of their undertakings to a mortgage lender for failure to register the mortgage.


The solution that my firm has come to is to have the clients pre-sign the stamp duty tax returns before completion, at the same time as we ask them to sign contracts, transfers and leases. Sometimes this necessitates leaving the completion and exchange dates blank on the form.


There are difficulties with the new system that need to be addressed by the Revenue. However, a change in practice by this profession should not require more than the time so far allowed. Let us address the real issues and get them corrected and not whine about the fact that we are being forced to do things in a different order.



Ben Pickup, assistant solicitor, Ilett & Clark, Worksop, Nottinghamshire