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Part exchange and stamp duty avoidance ?
Howsey_2
Posts: 1 Newbie
I'm selling my house for £300 000, I'm considering a part exchange for a smaller property
(which isn't on the market but is worth at about £250 000.
The buyer wants to buy mine for £250 000 and sell me his for £200 000.
So he can avoid the 3% stamp duty which would have been payable on mine.
Would this be legal ? Could there be any problems with this ?
Thanks
(which isn't on the market but is worth at about £250 000.
The buyer wants to buy mine for £250 000 and sell me his for £200 000.
So he can avoid the 3% stamp duty which would have been payable on mine.
Would this be legal ? Could there be any problems with this ?
Thanks
0
Comments
-
Stamp Duty is payable on the market value of the property rather than the actual selling price. However, being that market value is always subjective and that the market is pretty rubbish right now, I'd say that the drop in price was feasible.
When you proceed with solicitors etc, just state the sale prices as they are.Everything that is supposed to be in heaven is already here on earth.
0 -
In the case of an excahnge of properties it is right that the SDLT is payable on the market value, as the proposal is an obvious fiddle.
It really does depend on whether the figures are supportable from market evidence. There is always some room for manoeuvre in a case like this - - you can go for the lower end of the reasonable band of values for a particualr type of property - whether as much as £50K I don't know.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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