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Stamp Duty and bust
Catbells
Posts: 863 Forumite
I've seen a house which is £530k and I just discovered that anything over £500k incurs 4% stamp duty whereas under its 3%. Do you think I can offer £499,999. It sounds a bit cheeky but would mean I wouldn't have to pay the 4% stamp duty and also I would be making a reasonable offer on the asking price.
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Yes!
I'd start around £480k if you want to try and seal it at £500k.
The threshold for 4% is £500,001 so it's fine to offer a round £500k without paying more SDLT.
The EA won't be surprised at offers like that and they may be your friend in this case. It may even be priced at £530k to try and make it easier for them to sell at £500k. You never know.Everything that is supposed to be in heaven is already here on earth.
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I've seen a house which is £530k and I just discovered that anything over £500k incurs 4% stamp duty whereas under its 3%. Do you think I can offer £499,999. It sounds a bit cheeky but would mean I wouldn't have to pay the 4% stamp duty and also I would be making a reasonable offer on the asking price.
From what I can gather, a lot of people go in 10-15% under the asking price for the first offer which means you could go in at £450k and negotiate your way up to £499,999 - if the vendor meets you somewhere in the middle it's an added bonus
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If its is priced at £530K then my guess would be that it is priced as such to attract a sale price of £500k.
If they ask 500K they will get lower offers.0 -
I can't believe you've come so far in life you can afford a £500k house and only just found out about stamp duty being more.0
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Imagine if the vendor says they'll only except £500,002 :doh:0
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Also there are ways, though effective tax planning, to reduce the stamp duty still further - if you want more info please contact via email0
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PasturesNew wrote: »I can't believe you've come so far in life you can afford a £500k house and only just found out about stamp duty being more.
The answer is simple - I haven't moved house for 20 years and have been busy doing other things in that time so stamp duty has not been something that's entered my head.0 -
MrGreenNewForest wrote: »Also there are ways, though effective tax planning, to reduce the stamp duty still further - if you want more info please contact via email
Yes I read about two ways in yesterday's Times. One was through Sharia Law of all things. A friend has offered to help me on this. I will email you about the other one. Can you not say on here?0 -
MrGreenNewForest wrote: »Also there are ways, though effective tax planning, to reduce the stamp duty still further - if you want more info please contact via email
Are you an accountant?
Oh and this isn't the first time I've seen this "planning":
https://forums.moneysavingexpert.com/discussion/26130550
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