Stamp duty loop hole

zzzLazyDaisy

That loophole was closed in 2004.

Nowadays any sale of fixtures and fittings over and above the purchase price must be included in the contract and must also be notified to HMRC on a separate form - including details of the original purchase price of the item (ideally with the original receipts) and its current second-hand value. Any transaction on the threshold of the next stamp duty band, showing a suspiciously high F&F element can be (and often is) investigated by the revenue.

If the 'loophole' being promoted in the OP involves not declaring, or over-inflating, the agreed purchase price of F&Fs, that is tax fraud.

Dave101t

a 2-poster account is asking for 'some con' he heard about from 'some guy' and is asking on 'some online forum'.

good luck with that.

sharkie

zzzLazyDaisy wrote: »

That loophole was closed in 2004.

Nowadays any sale of fixtures and fittings over and above the purchase price must be included in the contract and must also be notified to HMRC on a separate form - including details of the original purchase price of the item (ideally with the original receipts) and its current second-hand value. Any transaction on the threshold of the next stamp duty band, showing a suspiciously high F&F element can be (and often is) investigated by the revenue.

If the 'loophole' being promoted in the OP involves not declaring, or over-inflating, the agreed purchase price of F&Fs, that is tax fraud.

Thanks. This option was still offered to my friend early this year by the estate agent when he bought his one bedroom flat.

zzzLazyDaisy

sharkie wrote: »

Thanks. This option was still offered to my friend early this year by the estate agent when he bought his one bedroom flat.

Enough said!!!

lee636

ramsas01 wrote: »

I'm currently in the early stages of moving house. My husband is insistant on persuing this Stamp duty loop hole thing. Does anyone know anything about it?
He has been contacted today by Universal Planning Services.

Thank you. x

Might be someone from HMRC trying to catch out others who have done this kind of thing?! :eek: :rotfl:

g_attrill

This article suggests it's to do with concessions for Islamic mortgages:

http://citywire.co.uk/new-model-adviser/news-analysis-a-clever-stamp-duty-loophole-is-exposed/a346878

zzzLazyDaisy

That article is a year old - that loophole really only worked for high value houses (in the 4% bracket) but the mainstream lenders refused to get involved. In any case HMRC have since tightened up on this practice too.

neverdespairgirl

sharkie wrote: »

True i suppose, but you could always give £10000 for that oven and literally it can cost £2000+ to have bespoke lounge curtains made etc.

You must think that the Inland Revenue was born yesterday.

jockosjungle

As I've said in other threads using schemes to avoid SDLT. You can try it and it might work, if ir doesn't it was you who signed the form and said the return was correct. You'll pay the full SDLT you owe, plus interest and if you don't pay when they say you'll be pursued for the money.

You haven't made a mistake on the form, by using a marketed avoidance scheme you have intentionally tried to avoid paying tax, HMRC penalties are now based on taxpayer behaviour, if you're lucky you might get away with a 50% penalty of the tax due but they could easily charge you 100%.

The scheme could be anything, as you don't say I guess you don't know. It might be as simple as buying the fridge for £10k, in that case you've really wasted your money as HMRC will be rubbing their hands when that return comes in.

Most marketed avoidance schemes are aimed at large businesses, they know the risks and have their own people to take calculated risks and hire professionals to advise them. Ones aimed at the general public to avoid small amounts of tax (relatively) are different, these people see a tax saving and try it, they don't have the knowledge to see the consequences

R

terryw

Reported.....