Stamp Duty

homebuyer_3

I am about to participate in a home exchange. I am going to give my house and £210k (mortgage) for another house which is £430k. Is there a way of reducing my stamp duty on the £430k? Say sell my house effectively for £40k and buy the other house for £250k, thus saving £10k duty. Is this legal? Would the mortgage companies have a problem?

regularsaver1

You can't avoid stamp duty

Rick62

No its not legal. The mortgage companies would not have a problem, except your borrowing would be limited to the claimed amounts.

Ian_W

Your solicitor wouldn't do it either as s/he would also be in deep do-do for conspiring to evade tax - probably as a professional more than you. You can sell for what price you like but AFIAK SDLT is payable at the market value if you sell below it.

No one likes paying Stamp duty [or for that matter other taxes] so if they were that easy to avoid everyone would and the Govt would be skint. The Govt isn't skint, ergo they are not easy to avoid.

homebuyer_3

If we agree to sell each other at prices stated, then we are not avioding stamp duty. It will still be paid at the applicable rate albeit a nice little saving. Is it not up to the 2 parties to decide what to pay each other? Don't think it is illegal, just unfair to the poor government. Awwww!:T

Ian_W

homebuyer wrote:

I am about to participate in a home exchange. I am going to give my house and £210k (mortgage) for another house which is £430k. Is there a way of reducing my stamp duty on the £430k? Say sell my house effectively for £40k and buy the other house for £250k, thus saving £10k duty. Is this legal? Would the mortgage companies have a problem?

If we agree to sell each other at prices stated, then we are not avioding stamp duty. It will still be paid at the applicable rate albeit a nice little saving. Is it not up to the 2 parties to decide what to pay each other? Don't think it is illegal, just unfair to the poor government. Awwww!

So why ask the question in the fer..fer..fer..ferst place?

Just do it - but don't blame us if it all ends in tears and slapped legs! :eek: