Stamp Duty Threshold Increased to £125,000

Murtle

well I liked it, cause the last one reduced the value of my flat to the upper stamp duty limit as the value was so close to the point that two sellers had to reduce the sale price to match the stamp duty amount, now it falls nicely into the expanded amount.

Win some loose some. Swings and roundabouts.

But where does all the money go??!!

mentat_2

Well, I was hoping to sell for £128k, that's just not going to happen now, so the way I see it is I've lost £2k. Not alot to some, but possibly the difference between being able to buy somewhere else or not. And it's in a very good location, so it definetly would have sold for it. My neighbour sold hers for that last year. :sad:

So, I'll just have to bite the bullet and see what I get or hope I get a buyer who doesn't watch tv, read the paper, listen to the radio or talk to anyone. :eek:

Tassotti

Hi Menatat..this is the whole point

you were "hoping to sell" for 128K. Any one with any clue is not going to pay this. The most you could have hoped for is 120K. If you get above you are better off.

Just because the estate agent tells you it is "worth 130K", doesn't mean it is.

I do understand that 2K can be a problem but there are many ways around this (0% credit cards, intelligent refinancing).


Good luck

mentat_2

I do have to add one thing though (sorry), when I said I'd hoped it was because my next door neighbour with an identical flat sold hers for £128k last year.

I guess she had the timing right and desperate buyers.

Rubbish.

_pale_

exil

Well, in a year prices can go up - or down. You don't necessarily expect to get the same price. I once tried to sell a house - didn't get a sniff, but the bloke down the road sold his for 10k more than I was asking. That's the way it goes!

Tassotti

mentat wrote:

I do have to add one thing though (sorry), when I said I'd hoped it was because my next door neighbour with an identical flat sold hers for £128k last year.

I guess she had the timing right and desperate buyers.

Rubbish.

_pale_

Not sure it was timing. Check out hometrack and see if prices have altered that much. If they haven't, look at your place from a buyers point of view...To you , it may look wonderful, but get others impression of it.

I know this contradicts what I said earlier, but I lookmat it from a buyers and sellers point of view.

Does seem cliche,, but take on board others comments (withiout offense as it is your home)) then adjust to suit...May work..worth a go for a few grand..

neutrralise the property..make sue it is immaculate,,buyers don't have to do anything ehrn they walk in)

Good Luck

Tass

Jay1b

Well my vendors have agreed to £125K for the house and £500 for the carpets, curtains and oven.

£1250 Saved!

So I THANK YOU GORDON!!!! Still think your a ffing !!!! though...

MORPH3US

Jay1b wrote:

Well my vendors have agreed to £125K for the house and £500 for the carpets, curtains and oven.

£1250 Saved!

So I THANK YOU GORDON!!!! Still think your a ffing !!!! though...

Good news Jay1b.

However according to my solicitor, the fixtures and fittings will be included in the calculation. Has your solicitor def. said that you will get away with stamp duty by doing that?!?!

If so, I haven't got a clue what to do, my solicitor has started doing the searches so there's no way I can change but it seems strange that its ok for you but not for me in the same position!

I have just e-mailed the HM Rev and Customs to ask them about it and got an automated response to say that they aim to answer my query within 15 days :eek: :eek:

Thanks

M

MORPH3US

Just found some interesting information on HMRC:

Q. What's this about chattels?

* Purchasers have always been under an obligation to ensure that where chattels (carpet, furniture, &c) are purchased along with land and buildings the chattels are not overpriced in the documentation.
* In particular where they buy chattels as well as land and buildings they need to ensure that the amount entered on the form as the purchase price of the land and buildings represents a reasonable apportionment of the total price they pay.

Q. What is considered chattels?

* Chattels are items that do not form part of the land or the building, which the seller may choose not to take with them such as carpets, curtains and furniture.
* Chattels do not include, for example, fitted kitchens and bathrooms.
* The price attributable to a chattel (on a just and reasonable apportionment) is not chargeable to SDLT


Q. What are fixtures?

* ixtures are regarded in law as being part of the land.
* The price attributable to a fixture is chargeable to SDLT.


Q. Do I include the payment for fixtures & fittings with the purchase price on my SDLT 1?

* Where a purchaser agrees to buy a property for a price that includes an amount properly attributed to 'chattels or moveables', that amount will not be chargeable to Stamp Duty Land Tax & as such should not be included in Box 10 on the SDLT 1.
* But, 'fixtures' are regarded in law as being part of the land, thus are chargeable to Stamp Duty Land Tax and as such should be included in Box 10 on the SDLT 1.
* For more information, including examples of fixtures and chattels, please consult the SDLT Manual.


Looking at that (although i'm not sure how up to date it is) it seems to indicate that if my purchase price is £125,000 and I pay £1000 for "Chatels" then I get away with stamp duty. However if I pay £125,000 and pay £1000 for Fixtures and Fittings then I have to pay stamp duty.

Looks like its time to go back to my solicitor and politely tell her the above. Not sure how kindly she'll take to me telling her how to do her job though :eek: :eek:

M

Omertron

Remember that she is working for YOU. She should be up on this sort of information, although she might not be willing to bend the rules too much