Stamp Duty Question

ips_saint

Hi,

I am buying a property for 137k, but am also buying a parking space for 20k taking the property 'value' up to 157k. In Manchester the Stamp Duty threshold is 150k. Our Solicitors have sent through the Stamp Duty forms etc., but my question to the forum is this...is there any way we could get out of paying stamp duty given that the property is worth 137k, but with a car parking space the cost is 157k? The parking space is underground, and not land attached to the apartment.

It would save us a lot of money!

What does everybody think?

Thanks.

Ems*Honie

I would be on the phone to my solicitor to be honest, they should be able to tell you if its considered two transactions Good luck!

hazeyj

i would check with the stamp office as they will confirm that they are two seperate tranactions. I personlly would of thought that they are two separete purchases and will have seperate leases. i wouldnt expect your sol to know as most sols are rubbish at knowing stamp duty guidelines. they have no idea of the correct regs for stamp duty. ive just got 6 lots of stamp duty refunded for our block in m4 manchester. sorry about the typing had a glass of wine in my other free hand.:beer:

RiskAdverse100

The fact that the flat and the parking space have separate leases is irrelevant.

If the parking space can be owned by someone who doesn't have to be the owner of the flat lease then this would be helpful.

However, in most new developments the parking spaces go with the flats and cannot be separated.

If this is the case here then Stamp Duty Land Tax must be paid on the whole £157k.

In most cases if there is a deal involving more than one property but with the same seller and the same buyer then they are linked transactions for tax purposes and tax is payable on the whole of the purchase price.

So solicitors don't know the Stamp Duty Land Tax Rules then? Why should they - they are solicitors not tax accountants! The responsibility for the payment of Stamp Duty Land Tax falls on the buyer and no-one else. Yes, solicitors have to know some of the rules so that they can ensure that clients who buy property end up as the registered proprietor of this at the Land Registry but their knowledge is not limitless.

RiskAdverse100

softuk

Although you can no longer allocate part of the house price to 'fixtures and fittings', which are deemed to be immoveable and therefore part of the property and taxable, you can make canny use of the price of moveable 'chattels' such as carpets or curtains, which are not.
Broadly speaking chattels are moveable items that are not annexed to the property. They are distinguished from fixtures which are part of the property and on the value of which Stamp Duty Land Tax must be paid.

The following items have been confirmed by the Inland Revenue as being items that will normally be regarded as chattels:-

• Carpets (fitted or otherwise)
• Curtains and blinds
• Free standing furniture
• Kitchen white goods
• Electric and gas fires (provided that they can be removed by disconnection from the power supply without causing damage to the property)
• Light shades and fittings (unless recessed)

The following will not normally be regarded as chattels:-

• Fitted kitchen units, cupboards and sinks
• Agas and wall mounted ovens
• Fitted bathroom sanitary ware
• Central heating systems
• Intruder alarm systems