3% Stamp Duty - strategies to reduce cost?

bscousegit

We are in the process of putting our house on the market - valued at between 250k and 275k. Obviously with the change from 1 to 3 % stamp duty we are most likely to only get 250k?

Does anyone know of any strategies that you can use so that you can get a fairer price and minimise the impact of the 3% on the purchaser?

skim

the only one I know is for you to pay the stamp duty

lilyann1

We had this problem and the EA said that really our house was valued at nearer the £270k mark,but people out there are willing sometimes to pay only £250k because of the stamp duty.
Some people of course are only willing to pay 250k because thats all they can afford and they want a bargain.
I was told to put it on at the £275k mark and offer to pay the extra stamp duty over 1% to attract buyers.

steve700

Could you not sell the house for £249,999 and then sell the cooker/curtains /etc as 'fixtures and fittings# for the remainder?

I believe that this is perfectly legal............

bscousegit

Thanks for the replies.

Lilyann1, thought of going halves on the 3% stamp duty.

Steve700 - I think the tax office are more clued up these days on trying to sell £5k fixtures and fittings for £20k.

Whilst I shouldn't grumble about having a house worth £270k I don't feel as if the tax office are hitting the 'super rich'

There is a book called 'How to avoid stamp duty' by Russell Eaton advertised when I google the topic - has anyone read this, are the ideas within it worth me outlaying £25?

Woby_Tide

I'd just offer to pay the 2% difference in stamp duty, the fact that the valuations are between 250 and 275k means that some of the agents certainly don't think you'll achieve the top end of your quotes. If someone offers £275k they know they are actually paying £284k, if they offer £250k, they're paying £252.5k. In reality unless you're lucky people won't offer £275k, offers around the £270k are also probably unlikely unless they desperately like it. As soon as a buyer offers over £250k they know that offering £5k more is actually costing them £10k, offering £20k is actually £25k. It also boils down to what you'd be happy to achieve for the place, if you'd be happy with £270k, then offer the 2% stamp, someone may offer £275k, or even better happy with £265k and you could well get a £270k offer. I'd also save the £25 as it's unlikely to be worth it. May be worth starting your viewings at £275k, if the offers are low but feedback good then tout the idea of the 2% stamp with the agent to go back to the viewers.

Any road up, you may end up selling at £250k regardless.

Debt_Free_Chick

steve700 wrote:

Could you not sell the house for £249,999 and then sell the cooker/curtains /etc as 'fixtures and fittings# for the remainder?

I believe that this is perfectly legal............

£25k of second-hand tat?

Sorry, no offence to the OP but second-hand furniture, fixtures & fittings really has very little value. Essentially, what would you get if you sold via a car boot or the free-ads in your local paper?

The taxman is well versed in this little ruse and he will value it accordingly.

bscousegit

Think we have decided to put it on for £275k and as you advised Woby_Tide be happy with a net of £260k - £265k. Good idea about starting viewings at the higher price and if feedback good without decent offers step in with paying 2% of the stamp duty

Thanks