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Private sale: Liability to buyer after completion?
Comments
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Jeffrey_Shaw wrote: »No. SDLT rate at £249 999 is the same as at £250 000. It rises only above the latter figure.
Corrected now. Thank you.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Jeffrey_Shaw wrote: »No. SDLT rate at £249 999 is the same as at £250 000. It rises only above the latter figure.
Read before responding.
£250K is below SDLT threshold.so they agree to put 250k on paper but pay upto 3k of your fees.0 -
The OP has stated it's not about Stamp Duty. However, even if it were then the under-the-table money transfer would be the other way round, from buyer to vendor. In this case the Vendor is giving the Buyer £2k, ie the the Buyer has paid an extra £2k to the OP and now wants it back. That's not a very good SDLT avoidance scheme in my eyes.
No the buyer gave the vendor £2k for various fees. With any monies not used to be refunded. Then the buyer got into a dispute with vendor over what fees were included and what were not. So now vendor has decided to return the whole 2k back to buyer.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
No the buyer gave the vendor £2k for various fees. With any monies not used to be refunded. Then the buyer got into a dispute with vendor over what fees were included and what were not. So now vendor has decided to return the whole 2k back to buyer.
In a way the decision to return the money doesn't undo the original agreement.
Stamp duty is payable on the entire consideration - purchase price plus any other associated amounts, e.g. seller's EA / solicitors fees which the buyer has agreed to pay. So, if the purchase price is £250K and the buyer agrees to pay for certain fees then the entire amount for SD purposes is £250K plus fees. The fact that the buyer has initially overpaid with an agreement to reimburse the surplus is irrelevant. The entire price is the purchase price plus nett fees.
SD is payable on that sum and it is a conspiracy to defraud HMRC of the increase in what was due (proximity to SD banding only changes the amount due, not the criminality).
Repaying the whole amount afterwards doesn't undo the initial criminality.0 -
No, because:Stamp duty is payable on the entire consideration - purchase price plus any other associated amounts
a. 'Stamp Duty' was abolished about a decade ago;
b. Stamp Duty Land Tax, its replacement, has quite different rules; and
c. SDLT is not payable on fixtures/fittings/chattels , but only on the consideration paid by P to V for the property (land etc.] transferred. Some 'associated amounts' are part of this; others aren't!0 -
Where P and V are given by the Ideal Gas LawJeffrey_Shaw wrote: »c. SDLT is not payable on fixtures/fittings/chattels , but only on the consideration paid by P to V for the property (land etc.] transferred. Some 'associated amounts' are part of this; others aren't!R and T being the Reversioner and the Tenant respectivelyPV = kRT
[k is obviously Boltzmann's constant]Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
V = vendor.
P = purchaser.
What else could they have been? Duh!0
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