Keeping within a stamp duty band

rjgb

Hi all,

There is a house my wife and I are interested in buying with an asking price of £280k. It's been on the market at that price for 4 months. Of course, we'd prefer to get the house for £250k (thus only paying 1% SDLT).

I haven't yet approached the estate agent, but plan on making a first offer of £245k. If this is rejected (most probably will be), then I plan to raise the offer to £250k.

Now, I imagine several other people will have tried making offers of £250k for the same stamp duty-related reason. Therefore, I want to try and make our offer more attractive.

We are renting and can move quickly, which is a bonus and I will emphasise that. However, I was wondering if it is legally possible to say something like: "Our offer is £250k for the house. If the white goods are not included in the sale, then we would be happy to negotiate on price for those as a separate transaction". We could then offer, say, £1000 for those. There is no mention in the estate agent's blurb as to what the sale comprises.

Anyone know if this could be classed as tax evasion? Or is it a legitimate way to avoid tax? Don't want to do anything dodgy! Is there anywhere I can see a discussion about this in print from a government department?

Thanks for your help!

socrates

These type of transactions are looked into - anything around a threshold. With the amount of sales going down the various government agencies that police this have a lot more time on their hands.

It is a very serious offence and generally solicitors do not like to get involved in these matters.

Speak to the EA see what they suggest

Good luck!

terryw

On the figures that you quote, this amount is reasonable and I can't see any problems with the stamp duty people. It is quite common for contents to be separate from the property. It would be a different matter if you were paying £5000 for bog-standard white goods.

Over the years I have bought several houses and paid separately for the contents purely so that the price paid for the house itself did not not reflect the price of the house and the contents.

terryw

terryw

socrates wrote: »

These type of transactions are looked into - anything around a threshold. With the amount of sales going down the various government agencies that police this have a lot more time on their hands.

It is a very serious offence and generally solicitors do not like to get involved in these matters.

Speak to the EA see what they suggest

Good luck!

I agree absolutely that solicitors do not like to get involved in these matters. The reason is that it gives them extra work as all they want is a quick easy transaction.
I have known several cases of friends buying a property for just a few pounds over the stamp duty threshold and the solicitor involved has not mentioned or suggested paying separately for the contents.

terryw

MX5huggy

I think the seller is expecting to sell at a chunk over the 250K price and 1k for the internals aint goingto make a difference. Offer 250K saying why you are a great buyer. You may get luckly or at least the seller will get the message that thats what it is worth.

Robert_Sterling_3

I think that an Estate Agent will price a house at £280,000 knowing that people will be pleased if they get it for £249,995.

They will feel that they have saved £30,005 from the original price and paid £6,200 less Stamp Duty
Total £36,205. What a bargain.

What an Estate Agent.

Offer £249,995. Then don't budge.

Richard_Webster

The amount paid for chattels such as white goods has to be a reasonable reflection of their second hand value. £1,000 for a set of them could well be reasonable. However I fear OP may be a little naive here. If people have offered £250K before I'm sure they have also tried this tactic as well!