Stamp duty

deemy2004

Yes - tax evasion

Lara

For first time buyers purchasing at say £150k, do they have to pay stamp duty on the whole amount, or the difference between £120k and £150k .

Sorry................ excuse my ignorance here but son & partner a little .
Thanks.

divadee

Lara wrote:

For first time buyers purchasing at say £150k, do they have to pay stamp duty on the whole amount, or the difference between £120k and £150k .

Sorry................ excuse my ignorance here but son & partner a little .
Thanks.

you pay the whole amount. ie. bought a house at 150k stamp duty bill would be £1,500. Hope that helps.

muckell

Bozzy20 wrote:

I'm buying a house for £124k and contracts not yet exchanged but mortgage offer came through. Would it be illegal to try and renegotiate to get the house price down to £119,999 and I give the owner difference (£4,001) in cash! I would save £1240!!

Correct me if i'm wrong but its it not possible to re-negotiate it at say £119,995 and ofter say 4k for certain added fixtures ect.. I.e leave the carpets, curtains ect.

I may be wrong but i remember hearing it said on one of these property programs you see on TV.

Lara

Thanks divadee - what a bummer! Was hoping they could have a few pennies in the bank ! lol

theGrinch

gordon brown didnt mention it but the cut in stamp duty for residential properties is LESS than the RISE he will get from increases in stamp duty on commercial buildings and land....but they dont tell you that...thats why trust in politics is so low.

nothing to thank Brown for. he has raised more revenue from the inequity of stamp duty tax than any chancellor. remember you have already paid tax on your income and then they want to tax you again for buying something as basic as a roof over your head.

write to your MP and use your vote!

deemy2004

Whatever changes the chancellor makes all that happens is that the market prices adjust thus the first time buyers will be no better off !

For instance if the chancellor announced tommorrow that mortgage interest will recieve tax relief then their will be a near immediate jump in house prices thus negating the effect of the announcement.

Thus the stamp is reflected in the pricing of houses, for if it were abolished - buyers would still pay the same price as house prices would adjust higher to reflect the change.

Obviously the loser is the thus the SELLER, rather than the buyer, as the Seller would have recieved the amount being paid in stamp duty to the government i.e. in higher nominal house prices.

divadee

muckell wrote:

Correct me if i'm wrong but its it not possible to re-negotiate it at say £119,995 and ofter say 4k for certain added fixtures ect.. I.e leave the carpets, curtains ect.

I may be wrong but i remember hearing it said on one of these property programs you see on TV.

this is an old trick used for years and years but a couple of years ago the inland revenue clapmed down on this practice. You know have to fill in a inland revenue form to say how much the fistures and fittings are and lidt them if you are selling them seperately to purchase price.

If they think you have overcharged for fixtures and fittings they can come and check on teh property and catch you out that way. As its only 4K though you might be able to get away with it. as in the old days people would charge stupid money like £25K for fixtures and fittings if it took them over a stamp duty threshold.

garysletters

Also, your solicitor would be quite hesitant to do this, as they are the ones the IR can take action against if they are seen to be "aiding" your tax evasion

kingshir

Sorry to be thick but is the 'no stamp duty under £120k' only for first time buyers?