How to avoid stamp duty

Littleduck

Has anyone read or heard of a book called "How to avoid stamp duty" by Russell Eaton???

If so any chance of a little enlightenment.

garysletters

there are areas that are stamp duty exempt (to a certain level), and there are places at less than 60K. anything more than this and you should just pay it. Rules changed a couple of years ago so solicitors and the revenue dont let you fiddle things now.
I think the whole stamp duty thing is overplayed anyway (that'll start a debate). At only 1% of purchase price its hardly a deal busting problem, and if it is, then you cant afford the houses your looking at!!! You never know......the government might scrap it next week, and instead make buying a property subject to VAT at 17.5%, then you'd all start moaning. I know its an expense purely for the good of the treasury, but if they dont get it one way they get it another. how about all council tax is doubled instead????

Budget for it, pay up and settle in!

kazd

Its only 1% if its under 250k, a fairly average house nowadays is over that. We are unfortunately looking at 3% and believe you me that is a substantial amount. Then you have to add to that estate agent fees. Its a lot of money.

theGrinch

sure, there is a such unfairness about stamp duty not because it is retaxing income or savings already taxed (stealth) but it disapportionately weighs on areas of the country where prices are higher vis-a-vis what you can buy in other parts of the country and also unfair as it is not banded.

notwithstanding, that is the current law and you need to work within it. if you want it changed canvass your MP (esp with an election coming on).

general solutions are look for exampt areas or keep the purchase under £250k. other than that its at your own risk.

garysletters

Kazd, yes, I am aware that the rate increases to 3% at 250K, .....and indeed it goes up again to 4% at 500K, also in exempt areas the price is only exempt upto 150K.
My point was that the stamp duty amount is NOT an unexpected extra, it is a fixed percentage, therefore you should work it into your budget.

If, you have the money to be able to afford a more expensive house, .....lets say a 300K house, then stamp duty would be £9K. You know this from the start. If this is too much for you to afford, then you should only be looking at houses worth 290K in the first place!!!!!

Our stamp duty (or its equivalent) is I believe amongst the lowest in Europe.

garysletters

I'm just looking into other countries "stamp duty".

spain = 6%-7.5%
Ireland = 9%
Italy = 8%

etc etc.

We would all want to pay less, and I believe in the up coming budget that changes will be made, but I suspect that more money will be taken from buyers of more expensive houses rather than visa-versa. Also, theres a chance the IHT threshold will be raised as a "feel good" pre-election headline grabber, so not many people will hear about the extra stamp duty the government will cream off the top of the pile!!!

just my prediction.