Legal loophole in Stamp Duty?

virgo149

On the Fixtures and Fittings list (or one of the other bits of paper we've received from our solicitor recently) I'm sure there is a statement about 'reasonable prices' being paid for items extra to the sale and that this cannot be used to offset costs to avoid stamp duty. So you cannot pay £5K for an old fridge and get away with it - I think the solicitors have to report anything dodgy.

h4nym

Andy_L wrote:

I though Lamont increased it to make up for the high level of defaulting in poll tax.

It was probably more cynical than that to be honest - I think the main plan was to demonstrate that Conservative councils had lower charges than Labour - remember that it left Wandsworth with no poll tax at all, and Westminster with something like £30...

We're over-governed in this country. Too much government, not enough meaningful scrutiny. Still - I'm a firm believer in democracies getting the government they deserve.

Cuddly Gordon's motto:
If it moves - tax it. If it continues to move - regulate it. If it stops moving - subsidise it.

H

Dazza.mk_2

#9 As you are quoting Tax Freedom Day from the Adam Smith Institute perhaps it would be appropriate to quote the accompanying article for the 2005-2006 year?

http://www.adamsmith.org/index.php/think_piece/more/tax_is_five_months_hard_labour/

Per Adam Smith Institute Government spending has grown by 60% since 1997 with the biggest beneficiary being the NHS...

Yet however we are seeing record defecits in the NHS...

http://www.channel4.com/news/special-reports/special-reports-storypage.jsp?id=2520

I would say that for the 60% increase we are seeing financial mismanagement at a record level as well!

h4nym

Funnily enough, I'm pretty sanguine about the deficits - it's not a major problem that some trusts end up 1% overdrawn - so this is a red herring I suspect - albeit a high-profile one.

My biggest concern is that we're simply wasting the money! Paying way over the odds for everything - who (in the private sector) would pay such high rates that German doctors can afford to fly over for the weekend - do a weekend on call, and earn what they would earn in a fortnight in Germany? I've nothing against German doctors, I merely use that specific example to illustrate that this isn't a comparison against a low-wage alternative - this is our NHS paying for two days work what the German health service pays for fourteen.

I run a reasonably sizeable IT firm - I'd be out of business in minutes if I had such contempt for market forces. None of these government managers have to worry about customers - they've only got the one, who's very generous (because they don't have to worry about customers either!) and either can't or doesn't want to go elsewhere. I have to worry constantly about keeping my current ones so happy that they wouldn't even consider going elsewhere, and then finding new ones from my competitors that are more complacent.

Anyway - rant over... for now!

;-)

welshcakes

Thank you for all the replies and taking the time. It has been my home for over ten years so I wasn't aware that I would get taxed on any profit, especially since any 'profit' I make is going towards our new home!

Oh well, I just thought it was a loopole but still legal that I could use to entice more buyers.

Thanks to all

Ian_W

welshcakes wrote:

Thank you for all the replies and taking the time. It has been my home for over ten years so I wasn't aware that I would get taxed on any profit, especially since any 'profit' I make is going towards our new home!

But you're not getting taxed on any profit - your home is specifically exempt from capital gains tax.
Your buyer is being taxed, not you. Though the jump from 1-3% at +£250K does have an affect in distorting the market which means very few properties get marketed or sold under £270-5K as it's a big psychological barrier barrier to jump £5000 just for paying a a few thousand over the threshold. Some sellers offer to pay some of it to encourage buyers.

Rachman_2

benood wrote:

This is a myth as far as the UK is concerned. I believe in Spain, however, it is standard practise - "Black money" as it is called accounts for >50% of the purchase price. I wouldn't have thought it was specifically mentioned in the contract - that would surely defeat the purpose.

And if your buy goes t1ts up afterwards or you find a problem - precisely how do you get your money back - by suing because they were more bent than you expected them to be ?

Seriously, you spend the rest of your life worrying someone will shop you the Revenue - I'd rather sleep - if I can avoid it, I will, but evading it is not a good idea..

BTW, I understand if you use a Ford CD/radio, some bloke down the pub told me I can get free satellite telly at home.....

Rachman_2

Ian_W wrote:

But you're not getting taxed on any profit - your home is specifically exempt from capital gains tax

But for how long - if he can work it so only non-labour voters get hit - he'll do it, no question....... - at the moment, he can't touch it as he'll be lynched by the masses - who all think they've made £100Ks of profit on their houses - until they realise that they will have to buy another one.......

Ian_W

Rachman wrote:

But for how long - if he can work it so only non-labour voters get hit - he'll do it, no question....... - at the moment, he can't touch it as he'll be lynched by the masses - who all think they've made £100Ks of profit on their houses - until they realise that they will have to buy another one.......

Sorry mate - my crystal ball's in use at the moment with the 6 numbers for Wednesday!! :rolleyes:
Erm, but have you ever wondered how many MP's don't own their own house? The words Turkeys and Christmas spring to mind.

ManAtHome

Thought many 'em owned several (and claimed vast** sums of cash for the "inconvenience" of having to own at least 2).

** before anyone questions vast, have a guess at what anyone on minimum wage would take home each year.