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Stamp Duty Question (extras on house)

MMG
Posts: 97 Forumite
Hi all,
Was wondering if you could help me with a quick query with the following example :
A new build property is purchased for £250k, ie right on the 1% Stamp Duty Limit.
PC Sums are given, say 5k for kitchen, 1k for fireplace.
What happens if you want to add to the PC sums to the respective suppliers, ie a 8k kitchen or a 2k fireplace? Does this get added onto the house price, meaning that the Stamp Duty goes to 3%?
Any info appreciated.
Was wondering if you could help me with a quick query with the following example :
A new build property is purchased for £250k, ie right on the 1% Stamp Duty Limit.
PC Sums are given, say 5k for kitchen, 1k for fireplace.
What happens if you want to add to the PC sums to the respective suppliers, ie a 8k kitchen or a 2k fireplace? Does this get added onto the house price, meaning that the Stamp Duty goes to 3%?
Any info appreciated.
0
Comments
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Anyone know anything about this?0
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Aren't the finishes touches an extra that you pay for out of your own pocket?
New Build I am buying will see me get a nice bill just before completion to cover the costs of upgrading/adding items. So they won't go on to the value. Therefore not pushing you over the 250k threshold
I could be wrong but that is my understanding.0 -
sgh1976 is correct, but the Taxman is clamping down on this and you will need to be able to prove that the extra 10k has been spent on items bought, i.e ReciptsStarting Mortgage of £133,000 in DecWish me luckTarget £120,000 by 12/12/120
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Hi there, thanks for the replies.
It seems that my solicitor thinks differently. The kitchen CAN be done for the 5k allowance of the PC Sum, but obviously not ideal - to get it to a fantastic spec, it would be an extra 2k.
However, the kitchen suppliers wont let me pay for the extra direct to them, they want to bill it to the builder, which in turn would be on the final invoice?
Very confused - any other help?0 -
Sorry to bump this, but does anyone know about this sort of query?0
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What's PC?0
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Problem is, that a fitted kitchen is not removeable and therefore I would think is included in the value of the house, rather than as a fixture.
It may be different for a new build, but for a second hand house, you could not legitimately include a fitted kitchen on the "fixtures and fittings list".
Thus if you put an 8k fixtures and fittings in rather than a 5k one, your house has just increased in value by 3k, so you go over the SD threshold.
Fireplace may well be the same, it really depends on whether it is removeable "without temporary destruction of the property".
One way to get around it might be to ask the builders to fit the minimum kitchen allowed under mortgage rules (sink, oven?) and then employ them separately to fit the 8k kitchen. Not sure if they'd be interestd in this though.0 -
Hi there, thanks for the replies.
It seems that my solicitor thinks differently. The kitchen CAN be done for the 5k allowance of the PC Sum, but obviously not ideal - to get it to a fantastic spec, it would be an extra 2k.
However, the kitchen suppliers wont let me pay for the extra direct to them, they want to bill it to the builder, which in turn would be on the final invoice?
Very confused - any other help?
It shouldn't go on the house value.
When I finally move in on the day of completion the builder will send a bill my solicitor for the "extra's". I will then have a bill to pay which will have to be paid on that day.
The fee you agreed and got the mortgage to cover is the amount where the Stamp Duty fee will be taken from.
So on completion there should be 2 bills, 1 for house, one for extras. Unless of course your builder is doing it differently to the one I am buying off (Persimmon)0 -
Infact......I believe we can pay for the extras from the moment we have selected them. There is a few months between selecting and completion. So you could ask the builder to invoice for the extras before completion to avoid any more confusion0
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