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The UK's worst tax... stamp duty Blog Discussion

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Comments

  • Sparkey a friend of mine tried this but his solicitor would not allow him to do it since he deemed it to be fraud which he was not willing to get involved in.

    Ivan
    He should have changed his solicitor.

    It's not fraud, it's being clever.
    The Name's Bond James Bond
  • raymond
    raymond Posts: 465 Forumite
    Tax is tax is tax it doesnt really matter what its called its just tax and if the stamp duty is scrapped you will just pay exactly the same under a different name ...

    Thats what you get for voting for a bunch of incompetants innit.
  • IvanOpinion
    IvanOpinion Posts: 22,336 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    James_Bond wrote:
    He should have changed his solicitor.

    It's not fraud, it's being clever.
    I don't know the legalities of it but it is not the first time I have heard of this being referred to as fraud. Do we have any lawyers out there that can answer this (preferably one with morals). Simple question is it (e.g.) acceptable to pay £249,999 for the house and another £25,000 for "contents" (e.g. a cooker worth £50) when the property has an effective market value of £275,000

    Ivan
    Past caring about first world problems.
  • Sparkey wrote:
    Very interesting blog.
    We are going to purchase my parents house next spring but are facing a £7k stamp duty!. Is it legal to reduce the asking price to £249,950 and pay the difference by cash to my parents?
    Would be v.interested to know.
    Kind Regards
    Sparkey
    :rolleyes:

    Unless the contents of the house are worth the difference then it's not legal, it's tax evasion...

    HMRC are starting to clampdown on this sort of thing, so you'd better be sure the contents are worth the amount you're proposing to pay for them and you'll need a contract that covers these items, so you've got documented proof.
  • buglawton
    buglawton Posts: 9,235 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    In the current mood of "saving the planet" I'd like the option of moving to a similar semi that is say 1/4 of the distance to work, so I can cut down the 10k miles I drive annually to work.

    But this high stamp duty completely puts the mockers on considering a move. It would take too long to recoup the savings on fuel, when you take other moving costs into account.

    The number of people affected like this must now be enough to overturn a substantial number of consituencies in the next election - if an Opposition party crisply & clearly took up this cause.

    [ADDED]

    I just had the idea of sending the above comment to my local MP via http://www.theyworkforyou.com/ - look up MP via Postode & send a message. Did this just now (but I am in a very safe seat, so my influence is low...), now, can other MSE'ers, especially those in MARGINAL constituencies, do the same?
  • Seraphim
    Seraphim Posts: 246 Forumite
    Simple question is it (e.g.) acceptable to pay £249,999 for the house and another £25,000 for "contents" (e.g. a cooker worth £50) when the property has an effective market value of £275,000

    I always understood this was tax evasion, unless the contents really were worth £25k. I personally wouldn't like to try it because I'm sure any property around that mark would come under close scrutiny to ensure that nothing like this was happening.
  • I'm currently looking at an apartment which I'm hoping to put in an offer of £265,000. It is in a block of flats and has a garage in a separate building. Do any of you know if it would be possible - and legal - to offer say £250,000 for the apartment and £15,000 for the garage? That way I would be paying the 1% stamp duty on the two things rather than 3% on the lot.

    Any thoughts would be much appreciated! Thanks.
  • benood
    benood Posts: 1,398 Forumite
    JennaLucy, your solicitor will tell you the two deals are linked for SDLT therefore it's 3% on the lot. You might be able to get away with it if someone other than you were to buy the garage but you're skating on thin ice.
  • Thanks for that. Probably just going to have to take the 3% hit!
  • buglawton
    buglawton Posts: 9,235 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Because you will be borrowing most of that £8,000 tax bill you might think that it's not so very important. I can understand it because you are in the middle of the excitement of clinching that deal. Perhaps that's also what the Govt. is depending on. Work out what that £8,000 will cost including total interest. If you don't think this is fair taxation then I suggest you use http://www.theyworkforyou.com/ to make your views firmly known. I did & got a personal reply from my MP.

    In the long history of unfair tax grabs, from 99% tax on top earners, to the 70's 25% 'luxury tax' on electronics goods and the 80's Poll Tax, I notice that in the end, unfair taxes do get scrapped.
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