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Stamp duty limit

anuarun
anuarun Posts: 38 Forumite
in House buying, renting & selling
Hi!!!

I'm a FTB, and finally i liked a 2 bedroom house.
The selling price is £130 K.
I'm unable to decide on the price to put an offer .
Can anyone please advise me the price below which there is no stamp duty so that i can quote that price.
Have the Govt increased the stamp duty exemption from 120K to 125K?

Any advise on what price to put an offer?

Any kind of advise is appreciated.

Regards,
AA

Comments

  • cattie
    cattie Posts: 8,844 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Yes it's been increased to £125K now. Details of stamp duty here http://www.direct.gov.uk/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/TaxOnRentalIncomeArticles/fs/en?CONTENT_ID=4015918&chk=ckFnhe
    The bigger the bargain, the better I feel.

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  • sarah_elton
    sarah_elton Posts: 2,017 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    There's no hard and fast rule to how much under asking price to offer, though the £125k stamp duty threshold is obviously a sound bargaining point.

    Have you looked at completion prices online - i.e. what other similar properties have sold for recently? That's one of the best things to go on to be honest, although obviously you may not know what state they were in.

    Asking prices are just that, and can vary massively.
  • meltme
    meltme Posts: 59 Forumite
    even if you go over the stamp duty price ....if you talk to the seller and get them to aggree the price below the stamp duty for the house and the remainder for "accessories"



    house = 130'000

    sale = 124'000 + accessories = 4'000

    buyer gets 130'000 you dont pay stamp duty!!!!
  • Burnley_Lad
    Burnley_Lad Posts: 277 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    meltme wrote:
    even if you go over the stamp duty price ....if you talk to the seller and get them to aggree the price below the stamp duty for the house and the remainder for "accessories"



    house = 130'000

    sale = 124'000 + accessories = 4'000

    buyer gets 130'000 you dont pay stamp duty!!!!

    surely £124k + £4k is £128k???
  • HGLTsuperstar
    HGLTsuperstar Posts: 1,904 Forumite
    Just out of interest, where did you find a 2 bed HOUSE for that price?
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    Don't try to avoid stamp duty like this. Your solicitor has to send in some sort of return saying the price you paid for the house and the extras are genuine. So they aren't going to risk being party to tax evasion. The taxman will always look closely at any transaction just under the stamp duty limit and you will have to prove that the price you paid for the extras is justified.
    HGLTsuperstar - we've done this one before - try :
    http://www.rightmove.co.uk/viewdetails-10361285.rsp?pa_n=2&tr_t=buy
    A house isn't a home without a cat.
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  • Jorgan_2
    Jorgan_2 Posts: 2,270 Forumite
    I had a buyer recently who tried to buy a property in the way suggested by melt me, we advised him to speak to his solicitor to see if he was happy to act for him if the sale went ahead in this way, his solicitor advised him that the only difference between tax evasion & tax evoidance was 7 years in prison.
  • meltme
    meltme Posts: 59 Forumite
    you could always pay the extras to the seller CASH so that the selling price of the property is below the stamp duty!!

    i know it may be a lot of spare cash to find but half of it would be going on stamp duty anyway!!
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