Stamp Duty - can this be done?

zzzLazyDaisy

robmiller667 wrote: »

HMRC might take a close look at the transaction.

Unless things have changed a lot in the past 6 years or so, HMRC WILL certainly take a close look at that transaction. OP's seller must complete a form which will list all the items, with their original purchase prices, and receipts. This must be sent to HMRC. The taxman then decides if the price agreed is a legitimate figure price for stamp duty purposes, bearing in mind the second hand value of the goods concerned.

It would be very difficult to rack up £15K worth of legitimate extra costs for purchasing second hand carpets etc in a house costing £250 (and therefore not a huge mansion) even if the items were fairly recently purchased.

hazyjo

You can only usually get away with up to £2k-3k for 'stuff'. I wouldn't expect that to include carpets - very unusual for them not to be included in sale anyway. As above, they'd only be able to sell them for 2nd hand prices anyway - ie not a lot! Unless everything's fitted in the house the vendors are buying, I doubt they'd want to include other items, especially 'recently purchases' ones.

What was the original asking price? Have you done your homework as to what similar properties have actually sold for (or whoever it is buying the house - I'm not sure it's you from your other comment)? They might have priced it well over the stamp duty threshold in order to get an offer above it and for someone to think they'd got a great deal by knocking off a fair whack. If they'd priced at say £270k, the chances are they'd be selling for £250k or less, so they might have gone in at say £290k. It doesn't mean it's worth more than £250k, and the valuer might undervalue it again anyway.

Jx