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Can you offer incentives seperate to you main offer?
monctur
Posts: 5 Forumite
Hi,
We're first time buyers that are able to go to a maximum £250,000 offer for a house as we wouldn't be able to afford the stamp duty.
We've seen a property priced at £280,000 so the price difference is pretty big.
If we were able to pull together some extra money (big if) would we be able to offer this to the vendor seperate to our actual offer for the house i.e. offer £250,000 for the house and say £5000 for carpets and cutains and thus avoid the stamp duty thresold?
Any suggestions would be appreciated.
Cheers
We're first time buyers that are able to go to a maximum £250,000 offer for a house as we wouldn't be able to afford the stamp duty.
We've seen a property priced at £280,000 so the price difference is pretty big.
If we were able to pull together some extra money (big if) would we be able to offer this to the vendor seperate to our actual offer for the house i.e. offer £250,000 for the house and say £5000 for carpets and cutains and thus avoid the stamp duty thresold?
Any suggestions would be appreciated.
Cheers
0
Comments
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do what i did and offer a lot less than asking price.. and you think hmcr do not look at these sales?It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
The trouble being Any payment seperate would not part of the contractHi, 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
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HMRC ( even if your solicitor would allow this ) would be all over you for tax evasion, note evasion not avoidance.Hi,
We're first time buyers that are able to go to a maximum £250,000 offer for a house as we wouldn't be able to afford the stamp duty.
We've seen a property priced at £280,000 so the price difference is pretty big.
If we were able to pull together some extra money (big if) would we be able to offer this to the vendor seperate to our actual offer for the house i.e. offer £250,000 for the house and say £5000 for carpets and cutains and thus avoid the stamp duty thresold?
Any suggestions would be appreciated.
Cheers
Try it and report back, I would be interested in whether you just got a fine or time inside .... unless you are an MP in which case you will get away with it.0 -
do what i did and offer a lot less than asking price.. and you think hmcr do not look at these sales?
Sorry, not sure i understand what you're saying. Are you genuinely suggesting that we offer a lower amount and see what they come back with or are you saying this practice isn't something that should be done as the deals are looked at?0 -
satchmeister wrote: »HMRC ( even if your solicitor would allow this ) would be all over you for tax evasion, note evasion not avoidance.
Try it and report back, I would be interested in whether you just got a fine or time inside .... unless you are an MP in which case you will get away with it.
Thanks for the response, just the straight talking answer i was looking for. Guess we'll need to keep looking unless they're willing to accept our maximum offer.0 -
Hi,
We're first time buyers that are able to go to a maximum £250,000 offer for a house as we wouldn't be able to afford the stamp duty.
We've seen a property priced at £280,000 so the price difference is pretty big.
If we were able to pull together some extra money (big if) would we be able to offer this to the vendor seperate to our actual offer for the house i.e. offer £250,000 for the house and say £5000 for carpets and cutains and thus avoid the stamp duty thresold?
Any suggestions would be appreciated.
Cheers
Legally its well dodgy and could have implications were HMRC to become aware. If you want a watertight legal agreement you should do things properly and pay your dues.
If you were buying from a friend you might be able to find a way around it but for all you know the seller might be a tax inspector.Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0 -
HMRC pay very close attention to sales which are just under the threshold. You have to value any fittings at their second hand price - what you'd get on ebay for them, and not what the seller paid for them new originally. Your solicitor won't allow you to put an inflated amount for such goods in the documents, as it is indeed tantamount to tax evasion, for which they will be struck off at the very least.
Any seller who has put their house on the market at £280K has to be very naive if they think that lots of people are going to fall over themselves to offer anywhere between £250-275K (ish). Only you will know the local market well enough to be able to judge whether it is so competitively priced at £280K that offers at full asking price are reasonable to expect.0 -
Sorry, not sure i understand what you're saying. Are you genuinely suggesting that we offer a lower amount and see what they come back with or are you saying this practice isn't something that should be done as the deals are looked at?
BOTH..offer 249k and do not attempt the deal due to HMCR take much interest in the 250k deals..good luck.It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0
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