Chapter 2: Preliminary Matters

Question 1

Will a seller pay capital gains tax?

Answer 1

Capital gains tax is typically not payable on residential transactions due to private residence relief.

Question 2

If capital gains tax is payable, when must the seller submit a tax return?

Answer 2

The seller must submit a tax return to His Majesty’s Revenue and Customs within 60 days of completion.

Question 3

If no capital gains tax is payable, must the seller submit a tax return?

Answer 3

No

Question 4

If in a residential transaction a solicitor is acting for the lender as well as the buyer, what information can they disclose to the lender regarding the transaction?

Answer 4

The solicitor is only able to disclose the information that the buyer has consented to. If the buyer withholds consent, the solicitor must stop acting for the lender.

Question 5

When is a solicitor authorised to act for the buyer as well as their lender?

Answer 5

1. The lender is an institutional lender.
2. Standard certificate of title is provided.
3. There is no conflict or risk of conflict of interest.

N.B. In commercial transactions, lender usually instructs own solicitor.

Question 6

What is the Law Society Conveyancing Protocol?

Answer 6

Standard of best practice for residential conveyancing.