Official searches to include VAT? HMRC has decided that local searches should be vatable and, if the proposals do not meet opposition, it is expected that CON29 searches provided by Local Authorities will include VAT from 1st February 2016. From February 1st 2016, it is expected that VAT will be added to CON29R and O reports. HMRC has decided that CON29s should be VAT applicable and have proposed to Local Authorities that the 20% charge is applied. Local Authorities have until 21st January to raise any objections to the VAT charge, however early indications are that the majority will be making the change without objection. Will this affect the price of local searches? Although the measures seem likely to be implemented, it is not yet clear how prices will be affected. Some Local Authorities have indicated that they will absorb the cost of the VAT; some will take the opportunity to review their pricing altogether; some will simply add VAT to their Con29s; and others have yet to decide. If prices do increase, then it is only the Con29 element of the local search (& any optional questions) that would be affected, as the LLC1 element of the search remains non-vatable. What does this mean for my clients? If prices are affected, then it would be prudent for conveyancers to inform clients of this potential increase. What should I do?We will keep you informed, giving you as much notice as possible if the proposed changes do go ahead. Rest assured that if the prices of local searches are increased, VAT will be added at the point of order as with other searches and you need make no other change. If you have any questions or concerns please contact your account manager or the helpdesk by calling 0844 249 9200 or emailing helpdesk@tmgroup.co.uk Tweet 13. January 2016 11:23 Jordan Drury Comments (0)
How long does a local authority search take? Local Authority searches are a fundamental part of a buying or selling a property – perhaps even the fundamental part. When purchasing a property it's vital to know certain information before proceeding: Is it a listed building? Are there any developments planned? Is the property in a conservation area? Not knowing this information could seriously hamper any future plans you might have for the property. About Local Authority searches The Local Authority search consists of a standard LLC1 result and a CON29 result. The LLC1 form contains information relating to: • Listed buildings • Conservation areas • Tree protection orders • Improvement or Renovation grants • Smoke control zones • Future developments The CON 29 document consists of two separate parts, CON 29R (Required): • Building control history • Nearby road schemes and motorways • Contaminated land • Radon gas And CON 29O (Optional), which deals with a number of optional extra enquiries, depending on the property circumstances. • Road proposals by private bodies • Public paths or byways • Advertisements • Completion notices • Parks and countryside • Pipelines • Houses in multiple occupation • Noise abatement • Urban development areas • Inner urban improvement areas • Simplified planning zones • Land maintenance notices There are a total of 348 local authorities in the UK with a further 24 county councils and, although some will offer additional information upon request, the majority will simply provide LLC1 and Con29 results. How long does a Local Authority search take?Between 48 hours and 42 days, based on 2015 performance. Much is made of the notion of searches delaying property transactions but, in reality, the average length of a property transaction is 88 days and the slowest Local Authorities are currently operating on a 42 day turnaround, based on performance so far in 2015. Conversely, we work with some Local Authorities who can return search results within just 48 hours. Much depends on an individual Local Authority’s method for the receipt of search requests and the return of search results – through our online portal, via email or post. Many Local Authorities face increasing pressure to further reduce spending, therefore it is inevitable that staffing levels are reduced in many departments, one of those being Land Charges. We work with many local authorities who have a Land Charges department that consists of just 1 person. How could they be quicker?The obvious answer is additional staffing, however, there are ways in which TM assist in the receipt and delivery of LA searches. The use of the TM portal as an alternative to postal or emailed requests reduces considerably a Local Authority’s turnaround time, postal costs, and administration resource. How much do they cost?The price varies according to each Local Authority and there is no standard pricing.Tweet 4. March 2015 14:14 Kevin Dix Comments (0)
