wrong stamp duty charged

Discussion in 'Accounting and Tax' started by fernfurn, 22nd Jun, 2015.

  1. fernfurn

    fernfurn Member

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    I have just bought a house with a separate block on a separate title next door. I have just realised I have been charged stamp duty on the whole deal and if I was charged stamp duty on the block and then stamp duty on the house it would have been way cheaper. Should I talk to my conveyancer or ring the duty office direct. Whole deal was signed and delivered last week so conveyance might not want to put any more work into it.
     
  2. Terry_w

    Terry_w Member

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    No, you should talk to your solicitor about 'aggregation of stamp duty'. That is correct that you were charged on the combined value rather than 2 individual transactions.
     
  3. fernfurn

    fernfurn Member

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    why would that be so? This is an existing house on its own block and its own title, and the block next door is on its own separate title too? If I bought a house on its own block one week, then a block of land next month, they would be two transactions, wouldn't they?
     
  4. handyandy

    handyandy Member

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    I assume they were on the one contract? As mentioned the Office of state revenue like to maximise their rake and as such if the transaction looks the same then they will levy stamp duty as if they are the same.

    http://www.osr.nsw.gov.au/info/legislation/rulings/duties/dut036

    We nearly got caught in this with a purchase of 3 townhouses in the same complex. In this case they were different vendors and 3 different contracts but none the less they tried to levy aggregate duty. A call fixed it but they did initially levy the aggregate amount.

    Cheers
     
  5. Terry_w

    Terry_w Member

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    Because of the law - separate transactions are aggregated in situations where it is part of one arrangement and contracts are entered into within 12 months.

    You could buy 12 Smith street now and 13 Smith Street in 11 months and they could be aggregated so you are charge stamp duty on the combined value - even if different contracts and different dates.
     
  6. Terry_w

    Terry_w Member

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  7. Scott No Mates

    Scott No Mates ...and people wonder why?

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    unless of course that conventional numbering applies and 12 Smith St is bounded by numbers 10 & 14.