Stamp Duty on £270K house

sarah_elton

We are viewing a house at the weekend which is on at £285k but has been on since August. However, it's on with another agent at offers over £275k so I suspect they attracted offers at £250k.

If we like it, my first offer would be at the SD threshold. But if we have to go over, I personally wouldn't try and do fixtures and fittings or similar due to HMRC taking more interest these days. But then I'm a complete wuss about this sort of thing. :rolleyes:

lumscx

last week we put a 250K for a flat on the market at 260K....one day later the agent told us that the flat is sold at 255K!!! wired enough!

sarah_elton wrote: »

We are viewing a house at the weekend which is on at £285k but has been on since August. However, it's on with another agent at offers over £275k so I suspect they attracted offers at £250k.

If we like it, my first offer would be at the SD threshold. But if we have to go over, I personally wouldn't try and do fixtures and fittings or similar due to HMRC taking more interest these days. But then I'm a complete wuss about this sort of thing. :rolleyes:

James_Trimby

Hi you now have to be very careful with the fixtures and fittings game, they need to be the sort of items that could be removed (carpets/curtains etc NOT built in things like the bathroom!) There is a loophole scheme out there for £250k plus properties the effect is you save about half the stamp duty, OR if it all goes wrong you pay the stamp duty you would have paid plus a bit of interest! I am aware of 2000 plus transactions gone through with no problems so far. As for the comment about loophole planning there is also the Ruling from the courts that make it clear it is every taxpayers right to arrange their affairs in such a way to pay as little tax as possible. The revenue are aware of these schemes and have not changed to law to close them down so why not use them? The 250k to £500k schemes are only available through accountants registered to PROBIZ others operate schemes on a similar basis over the £500k price tag (and more again over the £1m mark)
I'm helping someone forced to pay £260k due to competition but they should get just over £3000 back from this scheme which is a little recompense!

sarkin1

Good trick for houses worth 230- 240, stick it on at 270 and take the offer at 250

sunshinetours

James_Trimby wrote: »

Hi you now have to be very careful with the fixtures and fittings game, they need to be the sort of items that could be removed (carpets/curtains etc NOT built in things like the bathroom!) There is a loophole scheme out there for £250k plus properties the effect is you save about half the stamp duty, OR if it all goes wrong you pay the stamp duty you would have paid plus a bit of interest! I am aware of 2000 plus transactions gone through with no problems so far. As for the comment about loophole planning there is also the Ruling from the courts that make it clear it is every taxpayers right to arrange their affairs in such a way to pay as little tax as possible. The revenue are aware of these schemes and have not changed to law to close them down so why not use them? The 250k to £500k schemes are only available through accountants registered to PROBIZ others operate schemes on a similar basis over the £500k price tag (and more again over the £1m mark)
I'm helping someone forced to pay £260k due to competition but they should get just over £3000 back from this scheme which is a little recompense!

Hmm - might also want to make sure your other tax affairs are pretty clean if using a Probiz product accountant. Accountancy has changed over the years but selling overseas property etc is not really my idea of a good traditional accountant even though I do accept some of the Probiz products are packaged well and can earn those accountants fees they wouldn't otherwise be able to get as part of a smaller practice

Sorry OP nothing to add but just be happy with the overall price you pay for your property be that at £250k + £2.5k or £260k + £7.8k

James_Trimby

Hi Sunshinetours

For most products would agree with you, and clients are told this, but as this one is a seperate tax from all the others it is not really a problem. I know of the reputation of some members who will rely too heavily on tax product rather than basics first but that is the same when comparing any accountancy firm, some are better than others. As for foreign property (and UK as well) why not try and use the buying power of a large group? BUT must admit I'm not happy being an estate agent so I don't market it unless someone asks. (as a percentage of total activity it is also very small but is an easy "oddity" to pick up on which does not always help!) I think it is also important to stress that the exta fees earned are based on a small percentage of the savings made for clients which normal small practice accountancy would not achieve. Better shut up before being accused of going off track!

not_loaded

sunshinetours wrote: »

…Sorry OP nothing to add but just be happy with the overall price you pay for your property be that at £250k + £2.5k or £260k + £7.8k

I made my point at #8 just for this very reason.

A successful negotiation will be win/win. I’m astonished that people really think that SD is a reason to knock £20k or even £30k off a given price. You need to look at it from the vendor’s point of view too, to get to a successful resolution.

The only other conclusion one can draw from some posts here is that no property is ever worth £260k, £270k, or £280k ‘because of’ SD, which is clearly rubbish.

If you’re buying in the £250k to £300k bracket think carefully about how to approach your offer if you actually want the property. Tax evasion can’t be the solution.

If you don’t want to pay the taxes and costs associated with buying, then don’t buy.

James_Trimby

HI not-loaded PLEASE be very careful banding "tax evasion" around. That is a criminal activity and any professional helping would be comitting an offence. Tax avoidance is a legitamate activity the two are very different. If accusing anyone of former you need to be very careful.

However I do totally agree that people to get too hung up on the valuations near the band changes. The fact that it is a charge on the total value rather than banded does make it difficult but the secret is to pay what you think it is worth worry about the rest later!