Stamp duty?

Lemmers123

Hi there,

Just wondering if someone could help me, I've been given two pieces of advice. I'm buying my sisters house for £175,000 and there liable to pay stamp duty of £1750.

IFA advice - buy your sisters house for 125,000 and gift her the rest of the money there 'avoiding paying the tax'

SOLICITORS advice - you can't do that as its tax avasion and will eventually be caught.

Obviously I want to do this legally but if there is a legal way of avoiding paying stamp duty I will try and do that.

These are both professional people therefore I'm confused so looking for the majority of advice that will offer me a solution.

Many thanks

L

chickaroonee

It's tax evasion, listen to your solicitor.

Dan-Dan

The IFA might be telling you that but i bet he wont put it in writing....

theartfullodger

Your IFA has advised you to commit fraud - and act in an entirely unpatriotic way btw..

Ignore him, sack him & find a new, honest IFA.

In your shoes I'd report him to whichever body, if any, regulates him.

sinbad182

theartfullodger wrote: »

Your IFA has advised you to commit fraud - and act in an entirely unpatriotic way btw..

Ignore him, sack him & find a new, honest IFA.

In your shoes I'd report him to whichever body, if any, regulates him.

Oh shut up you broken record bore.

But OP, yes, it's a terrible idea and you will get caught.

zzzLazyDaisy

Your solicitor is right, it is tax fraud. The full amount of the money paid for the house must be declared. HMRC tightened up on these 'loop-holes' some time ago. Also, if you decide to go ahead with this idea, you will need to change solicitors because your solicitor also acts for the lender (assuming you are buying with a mortgage) and will have to flag up the potential fraudulent declaration to the lender, since this impacts on your affordability.

Mowie

Some lenders have offers on at times for first time buyers. Halifax at the moment are paying 1% stamp duty.

dominoman

Its fraud and chance are that you will get caught.

HMRC looks closely at houses that are anywhere near stamp duty thresholds, and they will easily associate the fact that 1) you are related to the seller 2) the house was worth more than you paid 3) there is a transfer of cash made to the seller near the same time.

Don't risk it for the sake of 1%. Save yourself the stress of waiting for a brown HMRC envelope to pop through the door anytime in the next 3-4 years.

Dan-Dan

Mowie wrote: »

Some lenders have offers on at times for first time buyers. Halifax at the moment are paying 1% stamp duty.

How is that relevant?

outdoorcjc

Lemmers123 wrote: »

Hi there,

These are both professional people therefore I'm confused so looking for the majority of advice that will offer me a solution.

L

With the advice given, I would suggest there is only one 'Professional'

As everyone else has said, don't do it.

lvm

Dan-Dan wrote: »

How is that relevant?

Because this is what the OP's aim is - to reduce her costs, potentially by avoiding stamp duty. Getting a lender who pays it for her will do this.