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Stamp Duty: any ways to legally reduce it?

I've been searching this wonderful site for info on stamp duty and found there have been various posts about stamp duty mixed in among posts on different threads but I wondered if it would be worth starting one just to cover issues regarding this tax. I have looked at the government websites and understand the thresholds at which it applies etc. However, I'd really appreciate some advice on any ways we could legally reduce the amount payable.

We are looking at a house on the market for £270K which includes all carpets, curtains, range cooker, white goods, some furniture and a relaying of turf in the garden (currently concreted) by the current owners. The estate agent has told us that they have already refused an offer of 250K (to avoid 3% stamp duty) plus some cash from another buyer (illegal anyway)! We wondered if it would be legal to offer something like 250K for house plus 10K for the above goods/work. Does anyone know how the Inland Revenue judges these things or if they set limits on fixtures and fittings etc? What would the IR consider 'reasonable' for fixtures and fittings etc?
Thanks in advance
“A journey is best measured in friends, not in miles.”
(Tim Cahill)

Comments

  • david29dpo
    david29dpo Posts: 3,984 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    dont know, but all solicitors are now required to inform the IR if they think something is going on.
  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    you could buy in a stamp exempt area. thats about as legal as it gets.
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • david29dpo
    david29dpo Posts: 3,984 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    there are ways and means to do this, i would. the goverment get to much i my money anyway!
  • hells_2
    hells_2 Posts: 297 Forumite
    There are NUMEROUS stamp duty avoidance schemes out there....even though the Government say they have closed them down!
    I work in commercial property finance and so most of the transactions I deal with are £1m+...you would not believe the stuff my clients do to avoid tax and stamp duty...and do you know, half the time I swear they have not saved a penny, once they have paid numerous lawyers, accountants, tax advisers, trustees etc....! lol....

    Speak to a tax accountant I guess and they can advise you of any current loopholes, or for instance putting the property into different ownership (i.e. a family trust or somesuch).
  • lilyann1
    lilyann1 Posts: 514 Forumite
    We were told by Ea's and a barrister friend that you may get away with saying £5k for the white goods and furnishings,but they are clamping down on anything extra than that.
    We have just had to fill in a land tax form now with our solicitor for the stamp duty which shows all the details.
    Ask your solicitor what you are legally able to do.
  • sportbeth
    sportbeth Posts: 621 Forumite
    We paid the full asking price of our property on the basis that the vendor paid the stamp duty for us. We had the deposit but physically couldn't sav £9,000 in time for the deal to go through. It worked out well. As long as the treasury get their greedy mitts on the cash they don't care who it comes from
  • lilyann1
    lilyann1 Posts: 514 Forumite
    That's a good idea sportbeth.
  • sportbeth
    sportbeth Posts: 621 Forumite
    The couple we are buying from were a bit nervous about it at first, but once they knew we weren't doing anything illegal they were fine. As a first time buyer it was all we could do. And they don't have to pass any cash, it just comes out of the profit of their property
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