Stamp duty, fixtures and fittings...

pashka_2

A dream home is priced at just below stamp duty threshold, and there is already an offer.

How do people go about breaching this threshold by paying more for fixtures (and increasingly more - fittings)? What's here acceptable, and what's not?

dander

I believe this is a loophole that used to exist, but has now been clamped down on. Someone may be able to contradict me on this, but I think the inland revenue will require proof if the fixtures are valued at anything more than around £1k

Ian_W

Simple answer, most things are unacceptable and very little is acceptable.

Longer answer fixtures and fittings can't be excluded from the price for Stamp Duty though carpets and curtains or items of furnishings can BUT HMRC will closely examine transactions close to the threshold. General rule of thumb seems to be that payments in excess of £1K for these items will need to be justified. Your solicitor will not be happy/ may refuse to make the return on the purchase if they consider it is an attempt to evade tax rather than a genuine purchase of carpets, curtains, furnishings etc.

pashka_2

Ian_W wrote:

General rule of thumb seems to be that payments in excess of £1K for these items will need to be justified.

Thanks. Hope even £500 can make a difference here - AFAIK no offers have been accepted. And AFAIU EA must inform vendors of any offers in excess of the asking price while the property is on the market. Or am I wrong?

silvercar

By the sound of it the vendor could get more than one similar offer below the stamp duty threshold. The EA will advise the vendor on who they think is in the best position to move forward, mortgage agreements, completed chains etc.

You need to show the EA that you are in an excellent position to proceed [STRIKE]or you need to give the EA a bung![/STRIKE]

Ian_W

And AFAIU EA must inform vendors of any offers in excess of the asking price while the property is on the market. Or am I wrong?

I think it's a legal requirement for EA to advise vendor of all offers unless they have written instructions not to inform of offers below a certain price. If you're in a really good position to go ahead you might even get it with a matching bid if the other offers are from peeps whose circs are less good.
BoL.