Stamp Duty...can I pay sellers moving costs?

trombonewill

I am looking at a house and know the owner will accept £260,000. Obviously adding a big stamp duty bill. I have quite a lot of savings from MSE's advice over the past few years.

Would I be able to offer to pay the seller their estate agent fees, and to pay an amount towards there onward moving costs/stamp duty? ie. £10,000, I realise this can't be given in cash and only around £2000 could be for fixtures and fittings.

There is no way they will accept less than £260000as many offers have been declined.

Thanks for any advice!

LittleMissGiggles123

I know very little about this so wouldn't be able to answer but just wondered why you'd want to do this?

Surely stamp duty on £260k wuld be much less than paying £10k to the seller for moving fees? Or is stamp duty that much now? I moved 6 years ago so no idea what it would be now.

julieb1987

The Stamp Duty would only be £7800! Just pay it and save the hassle. Oh, and over £2000!

trombonewill

If we could get the house for £250000 and pay £10,000 fees etc of the seller then it would save £5300. Enough to double glaze the entire house!!

julieb1987

Ah, I see. You can get into a lot of trouble if the tax man finds out...

julieb1987

Delta_1984 wrote: »

As above + you still pay 1% on the £250k!!!

You pay 3% of the whole purchase price, which is £7800 in this case.

Edit: Guessing you just realised at the post has now gone

Delta_1984

I'm sure you have it covered - but depends on your LTV too doesn't it? If you've only got say £100k deposit, will you end up paying more in interest over the long term by doing this with 10k in cash now?

Delta_1984

julieb1987 wrote: »

You pay 3% of the whole purchase price, which is £7800 in this case.

Edit: Guessing you just realised at the post has now gone

Yep, I did know it was 3% on the lot not 3 on some and 1 on the rest but didn't do the maths that 101% of 250k + 10k was less than 103% of 260k before I'd pressed reply!

trombonewill

LTV wouldn't effect rates with £10,000.

Does anyone have experience paying sellers fees etc?

Thanks.

Yorkie1

It is part of the overall money which you are giving in the transaction, and will therefore have to be declared properly - otherwise it's tax evasion and, probably, mortgage fraud.

Exactly the same as giving a backhander for furniture.

martinsurrey

trombonewill wrote: »

LTV wouldn't effect rates with £10,000.

Does anyone have experience paying sellers fees etc?

Thanks.

As said by Yorkie above, what you are proposing is tax evasion, fraud and eventual money laundering (as you would be in receipt of illegally gained money, which when you spend/ transfer you are laundering), there is no LEGAL way around the payment of stamp duty in this case, the solicitor would have no part in it and he would be obliged to report you if he had any idea of what was going on.

If it was written into the contract you have to declare it, if it’s not the vendors solicitor would have no part in it as they would not have any assurances that yuo would pay.

In short and long, DONT even think about it!