Avoiding stamp duty

munroe80

I am in the process of buying a new house in the very annoying price range slightly above the £250,000 mark which of course is now being slapped with a 3% stamp duty levy. The vendor WILL NOT accept £250,000 but seems to be persuaded by an extra £5,000, which, for me will mean an extra £10,000 with the sudden increase in stamp duty. :mad:This charge would really really be stretching my budget and I don't think I could only go on with the sale if there was some way of avoiding the stamp duty increase. The vendor says he will accept the extra £5,000 in cash but I'm afraid this would be tax 'evasion' rather than tax 'avoidance'. Anybody any ideas?
P.S. the house is somewhat unfinished, with a lot of outside groundwork to be done and fireplaces to be added etc. There are no 'fixtures and fittings' as it is a new house which hasn't been lived in yet...

CloudCuckooLand

How much have you negotiated off the price already?

Average gap between asking and selling prices is running at around 9% last time I saw some stats...

Any vendor who priced within £5k of £250k should know, or be told by their EA, that they will not get it.

DO NOT agree any "scheme" to give them another £5k.

Stick to £250k. Leave your offer on the table. Wait a week. Keep your patience.

Jinx

I'd be very surprised if you could find a solicitor to purchase the house for you in this manner. Usually where cash changes hands its for 'extras' such as curtains etc, you'd need a lot for 5 grands worth. If you didnt use a solicitor for this money then what guarantees/receipts do you have?

Its such a lot of money I think I'd leave an offer of the 250 on the table and look elsewhere. Not much moving in this climate - they may reconsider.

Burridge60

Gotta go here and read up

http://www.hmrc.gov.uk/sdlt/calculate/value.htm

You are the buyer and you are the person certifying a self declaration for SDLT and you will be the one that HMRC come after.The seller doesn't care how he gets your money. You have the SDLT liability and are the one signing the declaration.

Houses "truly" in the £250000 to £265000 price bracket are blighted by the SDLT change to 3% at £250,001.

EDIT EAs are aware of this and most reputable EAs would have counseled their seller about this

timmyt

Burridge60 wrote: »

Gotta go here and read up

http://www.hmrc.gov.uk/sdlt/calculate/value.htm

You are the buyer and you are the person certifying a self declaration for SDLT and you will be the one that HMRC come after.The seller doesn't care how he gets your money. You have the SDLT liability and are the one signing the declaration.

Houses "truly" in the £250000 to £265000 price bracket are blighted by the SDLT change to 3% at £250,001.

EDIT EAs are aware of this and most reputable EAs would have counseled their seller about this

wrong

If you and the seller are a party to a fraud on the Revenue, then both of you face a fine and imprisonment, as do your respective solicitors, and the Estate Agent (if they know).

Don't do it.

When your lawyer sends off the stamp duty form and the Revenue see £250,000 or close, all they have to do is ask what else was paid...and ouch....there you go!

Burridge60

timmyt wrote: »

wrong

If you and the seller are a party to a fraud on the Revenue, then both of you face a fine and imprisonment, as do your respective solicitors, and the Estate Agent (if they know).

Don't do it.

When your lawyer sends off the stamp duty form and the Revenue see £250,000 or close, all they have to do is ask what else was paid...and ouch....there you go!

And I didn't think you trusted anyone else timmyt

If you did it you are the one the buck stops with no one else. Point the finger and I am sure the others would duck their heads and claim they knew nothing.

You just scolded (no ridiculed would be more fair) someone for allowing the Solicitor to charge them £85 to complete the SDLT form which is "their" self assessment declaration!

timmyt

Burridge60 wrote: »

And I didn't think you trusted anyone else timmyt

If you did it you are the one the buck stops with no one else. Point the finger and I am sure the others would duck their heads and claim they knew nothing.

You just scolded (no ridiculed would be more fair) someone for allowing the Solicitor to charge them £85 to complete the SDLT form which is "their" self assessment declaration!

c-a-n- y-o-u t-y-p-e E-n-g-l-i-s-h ?

Burridge60

Are your glasses slipping down your nose ?

dippy

Burridge60 wrote: »

And I didn't think you trusted anyone else timmyt

If you did it you are the one the buck stops with no one else. Point the finger and I am sure the others would duck their heads and claim they knew nothing.

You just scolded (no ridiculed would be more fair) someone for allowing the Solicitor to charge them £85 to complete the SDLT form which is "their" self assessment declaration!

Will the solicitors dare to lie to HMRC? Aren't they putting their licenses to practice in jeopardy? What if there's evidence such as emails around?

poppysarah

Don't pay that much for it and you'll avoid it.

If they don't let you pay less then buy something else.

theartfullodger

poppysarah wrote: »

Don't pay that much for it and you'll avoid it.

If they don't let you pay less then buy something else.

Quite: And surely the British way is to pay taxes lawfully due with good humour & promptly?