Just because something has always been done a certain way, doesn’t mean that’s the best way to do it. SDLT has been with us now for nearly two decades. In that time, it has been altered, added to and adjusted multiple times, and now stands one of the most complex and often-changed parts of the U.K statute book.
And yet, we still see firms in the conveyancing sphere who think that SDLT is not a big deal, and that it’s something which they have under control and have processes in place to deal with which are perfectly adequate.
What may focus the minds of such firms is when they start seeing claims from clients who believe they’ve missed a particular relief or exemption on their purchase, and want compensation for money missed out on.
Currently, such claims for missed Mixed Use relief and Multiple Dwellings Relief are becoming increasingly common. Given the confusion around the Higher Rate on Additional Dwellings, aka the 3% surcharge, it’s not difficult to imagine more claims in more areas will follow.
This comes at a time when PII premiums are rising by eye-watering margins. In the last quarter of 2021 alone, premiums rose on average by 30%, and industry experts don’t see any significant drops coming across the board anytime soon. Such rises have seen the closure of many small to medium-sized firms, some being absorbed into larger networks, others simply calling it a day.
Happily, a recent legaltech panel discussion hosted by Women in Wills suggested that there is hope for firms when it comes to looking at ways to lower their PII premiums, and it’s something which might also benefit firms in numerous other ways as well. Rob Hosier, a board member of the U.K. Legal Technology Association, said that in their latest review, “On PII renewals, 30-40% of firms got a discount because of the tech they are using”.
Pippa Shepherd, Head of Customer Engagement at Arken.legal, went on to elaborate the various benefits firms see from the use of tech:
“The benefits of tech are multi-fold. When we’re looking at fee earners and how many hours you can bill, freeing up time by speeding up admin using tech can allow you to get more out of your time, and reduce need for administrative resources.”
As a member of the UKLTA, SDLT Compass represents just such a resource. Complex cases which now might require additional time on a fee earner’s part to investigate can now be simply outsourced to Compass systems.
No more waiting for weeks for answers from HMRC, no more trawling through the very latest relevant case law on the definition of a dwelling – a simple, focused process which meshes seamlessly with existing systems and allows you to get the right answer quickly and efficiently, freeing up fee earner time and, more importantly, reducing the risks your firm could be exposed to.
This can then lead to reduced PII premiums, as insurers see your firm actively engaged in tech which not only increases your firm’s efficiency, but reduces the risk of one of the current highest sources of claims in the U.K. property marketplace. That’s a tangible benefit that can’t be argued with.
This article was submitted to be published by SDLT Compass as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.
One Response
Which insurers does this involve and what levels of discounts have been specifically attributed to tech; brokers I have spoken to have been unable to identify such insurers/discounts?