House Prices and Stamp Duty

CashSaver_2

Our house is on the market for £269,950. I am aware that with the threshold at £250K, the 2% extra stamp duty may deter potential buyers.

Has anyone offered a cashback to cover some or all of the difference in the threshold to help secure an offer?

Rosie75

I have seen some houses in the £270,000 region advertised with "stamp duty paid by vendor". Think this is fairly common.

lilyann1

Yes have seen it too,something we were considering if we couldn't get abuyer,but then our house got valued at £280k,so the EA's said we were just over that threshold where buyers try to get the property for £250k

ABN

Please don't offer cashback's as it only fuels HPI.

When the details are recorded on the land reg it makes it looks like you sold it for more that you really did then your neighbour puts his place on the market for 5% more and so it goes on. This is the "trick" that builder do to try to hide the real price.

Offer a price reduction in line with the increased amount of stamp duty by all means.

WestonDave

If you sell for £270k and pay their stamp duty you will pay £8100, plus roughly £3200 in agents commission (at 1% + VAT) leaving you with £258,700 and the buyer paying £270k.

If you sell for £262k and let them pay their own stamp duty you will end up with about £258,900, and they will save a few quid as well (£140ish). The only difference is that the tax man gets £200 less in stamp duty and the EA gets a bit less in commission.

Your choice!

Mrs_pbradley936

If you would take and offer it might be worth having two transactions one for the house and another for the fixtures and fittings. Lots about this on other threads just do a search (if you cannot find what you want say and I will copy and post here) But basically you charge £250k (or slightly less) for the house and say 18k for the fixtures and fittings. That would be anything that you could remove/take with you i.e. carpets, lights, curtains, curtain poles, and so on. It is perfectly legal for a "reasonable amount" no one says what is reasonable but if you kept below 20k and itemised everything you will be alright I should think. Just don't go charging 150k for a carpet!

susieb

pbradley936 wrote:

If you would take and offer it might be worth having two transactions one for the house and another for the fixtures and fittings. Lots about this on other threads just do a search (if you cannot find what you want say and I will copy and post here) But basically you charge £250k (or slightly less) for the house and say 18k for the fixtures and fittings. That would be anything that you could remove/take with you i.e. carpets, lights, curtains, curtain poles, and so on. It is perfectly legal for a "reasonable amount" no one says what is reasonable but if you kept below 20k and itemised everything you will be alright I should think. Just don't go charging 150k for a carpet!

Solictors are so hot on this that I think 20k will be seen easily as avoidance.
How about offering to pay the extra 2% stamp duty. If some one like it they will pay.

Mrs_pbradley936

susieb wrote:

Solictors are so hot on this that I think 20k will be seen easily as avoidance.
.

This is the problem about not having "reasonable" defined in law. A lot of people think that less than 10% would be reasonable. Certainly less than 7% You have to itemise everything not structural i.e anything that could be removed and taken away by the vendor.

Mrs_pbradley936

Details here about "Just and reasonable"

http://www.hmrc.gov.uk/manuals/sdltmanual/sdltm04000.htm

jamesn_2

pbradley936 wrote:

If you would take and offer it might be worth having two transactions one for the house and another for the fixtures and fittings. Lots about this on other threads just do a search (if you cannot find what you want say and I will copy and post here) But basically you charge £250k (or slightly less) for the house and say 18k for the fixtures and fittings. That would be anything that you could remove/take with you i.e. carpets, lights, curtains, curtain poles, and so on. It is perfectly legal for a "reasonable amount" no one says what is reasonable but if you kept below 20k and itemised everything you will be alright I should think. Just don't go charging 150k for a carpet!

This no longer applies for 'fixtures and fittings' - only for 'chattels' (more limited). HMRC are very aware of this kind of thing and you will not get away with £15k for carpets.

James

Mrs_pbradley936

jamesn wrote:

This no longer applies for 'fixtures and fittings' - only for 'chattels' (more limited). HMRC are very aware of this kind of thing and you will not get away with £15k for carpets.

James

I know lots of people that have. They have a price for the house and a price for fixtures and fittings fully itemised i.e. "Lounge:- carpet £300, wall lights £150, ceiling light £100, curtains £250, curtain pole £50" and so on all through the house. It cannot be illegal because people are doing it all the time.

The key point is do they form part of the structure? Or could you take them away with you in the removal lorry? You obviously can pull up the carpet and take down light fittings and curtains. Whether you would want to because they probably will not fit where you are going is another matter. If you did take them all with you and the buyer went out and replaced them, what difference does it make if they buy the replacements new from shops or second hand from Ebay and if they can buy them second hand from Ebay why not buy them from the vendor?