New VAT charge on local authority searches to cause home move delays, says Law Society

Property buyers must now pay VAT on local authority searches, The Law Society has warned, and some home moves may face delays in the coming weeks as a result. Rumours have been circulating among conveyancers during the run up to the New Year that from 1st January VAT will be added to fees charged for local authority searches, but so far HMRC has refused to confirm or deny these rumours. This, The Law Society says, may cause delays as conveyancers attempt to find out whether or not VAT should be added to bills. “Despite requests for clarification, we have yet to receive a formal response from HMRC about the proposed introduction of VAT on local authority conveyancing searches,” says Law Society president Robert Bourns (pictured). “A lack of clarity around conveyancing processes and costs helps no one and we are asking HMRC urgently to explain if, and if so, how and when these changes will come into effect. Even small delays in the home buying process can have big consequences, including the possibility of a sale falling through, causing enormous stress for consumers. “Property buyers and their solicitors need certainty, so they can focus on completing the transaction quickly and with minimum fuss.…