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Stamp Duty Threshold Dodge?
Skintbuthappy_2
Posts: 4 Newbie
Can anyone tell me if this is possible and if anyone has done it??
I am trying to purchase a house which is just over the stamp duty threshold, I was trying to get the price down so to avoid the stamp duty.
The Vendor doesnt want to drop that much and has suggested that a friend of his listed the garage for sale seperately so as to bring the house value down below the stamp duty threshold.
Has anyone heard of this?? Is it possible and if so are there any implications to think about before going ahead???
Thanks
I am trying to purchase a house which is just over the stamp duty threshold, I was trying to get the price down so to avoid the stamp duty.
The Vendor doesnt want to drop that much and has suggested that a friend of his listed the garage for sale seperately so as to bring the house value down below the stamp duty threshold.
Has anyone heard of this?? Is it possible and if so are there any implications to think about before going ahead???
Thanks
0
Comments
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Check it out with your solicitor, he will tell you if its a dodge he's prepared to put his name to.
Sounds a bit too dodgy to me, unless the garage was clearly separated from the house or was registered as a separate entity with Land Registry.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, 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 -
The costs and time involved with altering the entry at land registry would detract from the benefit of saving the stamp duty so much that it would be not worth doing.
The entry would have to be changed once to separate the titles into 2, then again after you had purchased it. Also you would not necessarily be able to mortgage the garage, it would have to be paid for in cash which would reduce you overall Loan to Value percentage thus possible having implications on the mortgage rate and product you are hoping to get.0 -
Can you do a deal on fixtures & fittings? I think this is done quite commonly? You have to be fairly reasonable about the valuation of things though, as otherwise HMRC are picking up on this dodge I think. But carpets, curtains, wardrobes, appliances etc could all be included and could reasonably be quite expensive.
If you feel like gifting them back to the vendor afterwards presumably this would be up to you?
Someone will probably tell me this is very dodgy though!0 -
You can get away with the odd £1,000 on this but nothing more.0
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