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Stamp duty double taxation
Irritatus
Posts: 1 Newbie
Hi, my first post and hope this is the right place for it. This concerns a commercial property and not a private house, but I need to have a rant.
Having just purchased a commercial property as an individual in order to lease it back to my company, I was obliged to pay VAT on the transaction. The grossly unfair thing in my mind is that stamp duty is payable on the entire amount INCLUDING THE VAT ELEMENT!!
How is it fair to pay tax on tax?
Discuss and calm me down please.
:mad:
Having just purchased a commercial property as an individual in order to lease it back to my company, I was obliged to pay VAT on the transaction. The grossly unfair thing in my mind is that stamp duty is payable on the entire amount INCLUDING THE VAT ELEMENT!!
How is it fair to pay tax on tax?
Discuss and calm me down please.
:mad:
0
Comments
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How is it fair to pay tax on tax?
You do it every time you buy a litre of petrol or dieselThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Why didn't you buy it through your company?0
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It’s quite common to pay tax on tax unfortunately.
Most calculations that a company produces for billing on to another person will contain taxed items, then the VAT gets added at the end.
C’est la vie!0 -
poppysarah wrote: »Why didn't you buy it through your company?
I suspect because its some part of a tax avoidance plan..The only place where success comes before work is the dictionary…
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I suspect because its some part of a tax avoidance plan..
Its quite common for small business oweners to own the commercial premises in personal names and to lease to their company. Quite often is for favourable income and capital gains tax reasons, but I would be pushing it selling it as a tax avoidance plan
Stamp duty however has always been on the VAT inclusive sales price
IHT is the ultimate double tax if you need any more example from those above0
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