Fixtures and fittings stamp duty loophole.

devotee

pararct wrote: »

That must be some kitchen you have there :rotfl:

What else can your fridge do then other than keep your food chilled?

Yes I do. And your point is?

mr_fishbulb

devotee wrote: »

My solicitor has informally told me that you can ask £5000 for fixtures and fittings. Any more is classed unreasonable. And no, not buying anything close to the stamp duty threshold before anyone accuses me of that.

My fridge costs over £1k and my cooker is well over £1k, so if I were selling my place and it was close to the stamp duty threshold that would be easy to incorporate.

I think HMRC will look at the market value of the white goods, rather than what they originally cost. They depreciate in value very quickly.

pararct

devotee wrote: »

Yes I do. And your point is?

The fact that they may well have cost you over £1000 to purchase the items but they will not be worth that now!!

HMRC now all the fiddles you know!!

sonastin

devotee wrote: »

My fridge costs over £1k and my cooker is well over £1k

New or in its current condition and age via, for example, ebay?

In a high-end kitchen at a push it is possible that used goods would stand that sort of value, but not many £250k houses have £50k kitchens fitted.

devotee

pararct wrote: »

The fact that they may well have cost you over £1000 to purchase the items but they will not be worth that now!!

HMRC now all the fiddles you know!!

They are worth that to me if I were to replace them. The appliances are less than a year old and I'm taking most of them with me, only leaving the cooker, for the rest I'm putting something cheaper in. Plus they all come with the 5 year warranty and I expect them to last for over 10 years.

I'm just repeating what my solicitor has told me when I discussed with him about viewing the property that was just over the SD threshold - the property in case was over 500k.

Anyway, as I'd said before that doesn't apply to me as I'm buying a property that is not near the SD threshold so I didn't need to "claim" that amount for F&F. And the house I'm buying is a project, so !!!!! all in it! :rotfl:

neverdespairgirl

RedwoodBrook wrote: »

I'm glad this thread has come to light as it bears some relevance to the house Ive just 'purchased'. The previous owner passed away and it has been sold to us as she left it - full of her worldly possessions. Given that what we have 'paid' is just above a threshold, I might ask my solicitor to look into this.

Have you already bought it - exchanged and completed? Far too late to change anything, in that case.

neverdespairgirl

devotee wrote: »

My fridge costs over £1k and my cooker is well over £1k, so if I were selling my place and it was close to the stamp duty threshold that would be easy to incorporate.

they may well have cost that, but it's rather unlikely that their second-hand value is that.

If HMRC questions it, you need to be able to back up the valuation. And they look much more closely at f & f lists which are just below a threshold.

Davidr0wl4nd

I own a limited company and have just bought a commercial property with a sitting tenant who has a lease for the next 8 years I an to keep them in and just rent the property to them. They are a national convenience store chain and pay 18500 per annum, so it seems a good investment. Additional to that their ate two flats above the shop which again are both currently tenanted they bring an income of 399 PCM. Bringing the total income to 28k per annum. Problem is I have paid more than the property is worth 255k not realising I would qualify to pay stamp duty !!! I want to know if I can apportion done of the sale to goodwill because of my sitting tenant and the long lease they have. Or could I argue gown the fixtures and fittings route. They have plush fittings I.e display stand display freezers, fridges etc... The property vacant would cost 160k which I can prove as next door is vacant and for sale. Please help

Thrugelmir

Davidr0wl4nd wrote: »

Or could I argue gown the fixtures and fittings route. They have plush fittings I.e display stand display freezers, fridges etc... The property vacant would cost 160k which I can prove as next door is vacant and for sale. Please help

Are the fixtures and fittings as you describe your property or those of the tenant?

The price you pay determines stamp duty not the market valuation.

Gorgeous_George

TehJumpingJawa wrote: »

Fixed.

It's even more ridiculous for 1st time buyers; jumping from £0 to £7500 tax when passing over the £250,000 threshold.

and yes, that is precisely the motivation for my query.

Initial offer £125,000. (obtained written acceptance)
Gazumpted (oh to live by Scottish law, or even American law....)
Offer raised to £130,000

£5000 increase in offer price turns into a £6300 increase due to Tax liability.

It boggles the mind that house buying & selling is ruled by such antiquated broken laws & taxes that punish an honest buyer two-fold.

AIUI, FTBers pay no stamp duty for purchases up to £250,000. Other buyers pay 1% on purchases over £125,000.

All buyers pay 3% for purchases over £250K.

Your stamp duty will be £1,300 if you are not a FTBer.

Some areas have higher exemptions (link).

GG