Please Help! Basic Query

LouiseUK_2

We are looking at a house for £129,000. We want to avoid stamp duty.

Is it possible to offer the vendor £4000 cash and buy the house for £125,000?

We are good friends with the vendor.

Please could you tell me if people do this or if I have just had a really illegal brainwave!!!

Thanks

kingkano

Can you hang on for 2 days? lol. Gordon might raise the tax threshold

It IS illegal strictly speaking. Also how good friends is good friends.... they'd be trusting you completely to give it to them....

FInally remember that to the bank and everyone the property will be worth 125.... will this affect your mortgage/deposit etc?

If the stamp duty level doesnt go up.... you could investigate the fixtures and fittings loophole (since the amount is relatively small). ASk a solicitor about this though. Basically you'd be buying their carpets, white goods, light fittings, shed, etc for the £4000 in cash which wont count towards the stamp duty house price. You have to be very very careful doing this thought. Anything over 5k or if the fixtures list doesnt look like its worth a tenner, the taxman can send you a delayed bill for the stamp duty!!