Stamp duty over £175k

googler

VKay wrote: »

Wow- 'upgrades', eh?! is that legal??
Also is anything ACTUALLY being upgraded, do you have to prove this if asked?

It's the Inland Revenue, or Her Majesty's Revenue & Customs, who collect the Stamp Duty Land Tax on behalf of her Government.

I suggest you read up on whether or not they take an increased interest in land and property transactions which take place JUST below the stamp duty threshold, and consider - if the HMRC DID take an interest in your transaction, would they

- take your word for it
- ask for/expect/demand documentary proof

I know which I think would apply...... and it's not taking your word for it.

VKay

baby_boomer wrote: »

With an election in the first half of 2010, what are the odds on Gordon reintroducing the 1% Stamp Duty on houses between £125K and £175K?

Nil? :rotfl:

I have to say- that's what I'm hoping! What chance have first time buyers got at the moment?!! May as well try to encourage them a bit. Market can't survive for long without them!:p

tek-monkey

Having dealt with HMRC, I'd go the honest route every time. They take forever to bite, but they tend not to let go. Still, if you believe you are in the right go for your life. I'd ask for the EA to put it in writing that they said its fine though, countersigned by your solicitor.

bennybroadbean

HMRC have had a massive crackdown on people avoiding Stamp Duty with cases like that. I have heard of some people trying to reduce the cost of their houses by £20k with 'upgrades'

lowtidesurf

Thats what I mean 20,000 off the price of a property for Upgrades is ridiculous, However 2000 would surely be considered reasonable for "Upgrades"

bennybroadbean

But these are not 'upgrades' as they are part of the original cost of the house?

lowtidesurf

Not Always, When you purchase the house it does not have to contain anything at all. Just the house. So anything extra surly can be called an upgrade.

bennybroadbean

Thats true it could be the house and nothing included and the extras or upgrades could be the kitchen etc. I would be careful incase HMRC do investigate then you could be liable for stamp duty avoidance.

googler

So when the backroom boys at HMRC look at your house, with its £2000 worth of 'upgrades' and look at the one next door, which sold for the same price without upgrades, and on which the buyers DID pay stamp duty, what do you think they're going to do........?

lowtidesurf

Luckily there is few houses on the development. 5 Max and they are all different sizes and include different amounts of land, parking spaces and number of rooms. So the prices of most of them are under 175,000 anyway.