Stamp Duty

louped

My husband and I are looking to buy a brand new home. We have seen some building companies offering "stamp duty paid". I have heard this is because they get around some kind of legal loophole. Does anybody know what this is ? Is it perfectly legal? and does it only apply to certain areas in the country or certain price brackets of new homes.

I have already checked out the postcode we are going to move to and it is not stamp duty exempt as it is not a deprived area.

Obviously dont want to get into trouble with the tax man but would love to save a big chunk of our moving costs if we could!

Louise

dnwilliams

As far as I’m aware there is nothing untoward about this offer. The fact is that stamp duty, especially at £250,001 (3%) is enough to hold back many people from taking the jump to a larger home. Builders know this and incorporate it into their marketing to help entice buyers, especially in a slower market.

New homes usually sell at a huge premium over their second hand counterparts and there are good profits to be made especially on projects of 5 homes or more. If the builder expects £x for a particular plot they will often load the price slightly and then offer the deal.

The alternative is for you to pay the stamp duty but offer them a lower figure. Chances are, that if your in a good position, you may get a better deal that way.