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Reducing stamp duty

I was just looking up stamp duty levels on house purchases. A lot of the Google search results for "stamp duty calculator" that came back were links to sites that purport to show you a way to reduce it.

You have to sign up to be pestered in order to find out how it works. I don't want to be pestered, so I was wondering if anyone knows what this wheeze involves.

I'm aware that expats buying through companies can achieve a lower rate of stamp duty. The flipside must be that the company incurs CGT when it sells the house. This is of no interest to me because it's not a saving at all, it's just swapping a known cost now for an unknown one in the future.

Can anyone shed any light, even in outline terms, on what this ploy involves? I've searched for "stamp duty", but this generates a very large number of hits. Thanks in advance.

Comments

  • FTBFun
    FTBFun Posts: 4,273 Forumite
    http://www.hmrc.gov.uk/avoidance/spotlights10.htm

    The main scheme seems to take advantage of sub-sale relief, which is chiefly designed for instalment sales but has been picked up by dodgy scheme providers. IMO you should avoid these like the plague as HMRC are cracking down on this sort of avoidance.
  • hcb42
    hcb42 Posts: 5,962 Forumite
    I hope there isn't a stamp duty calculator to calculate 1%;)

    Other than the dodgy scheme above, the other way os to claim you are paying £250k for the house and £18K for the second hand washer and curtains and the like...again dodgy.
  • zzzLazyDaisy
    zzzLazyDaisy Posts: 12,497 Forumite
    Part of the Furniture Combo Breaker
    If you do an MSE search, this question comes up fairly often.

    The short answer is that there are no legitimate stamp duty 'loop-holes' available to the ordinary residential purchaser.
    I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    edited 14 April 2011 at 11:54AM
    II've searched for "stamp duty", but this generates a very large number of hits. Thanks in advance.
    search again this time on "stamp duty mitigation" , this gives 16 hits - this is one of the better ones particularly the last few posts by people now being told to repay tax they thought they had got away with

    this question comes up every 2 - 3 weeks, the answer is the same each time, go read it :D
  • Thanks 00, you have identified the search term I needed to use. I couldn't see how this tax is in any way avoidable and it seems it's not!

    And in answer to hcb42, no, I can do that one - I just needed to know what the rates are these days!
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