Stamp duty fees hack!

Pixie5740

I think this hack supersedes the OP's ideas about how to appear to be a resident landlord when you really live elsewhere.

davidmcn

To be fair, there's no need to physically divide the property, it could be two purchases each of a 50% interest in the house. It's the fact the transactions are obviously linked which is the problem.

Mossfarr

Even if you could get around the planning, building regs etc etc If you were buying two properties then surely one of them would actually incur the extra 3% stamp duty as a second home

aneary

Council tax as well.

System

Mossfarr wrote: »

Even if you could get around the planning, building regs etc etc If you were buying two properties then surely one of them would actually incur the extra 3% stamp duty as a second home

Which would work out as £12,500 in total, so actually only a £2,500 saving even if all the other issues could be worked out (which they couldn't).

OP, for the complete avoidance of doubt, this is from the HMRC website:

When 2 or more property transactions involve the same buyer and seller, they count as ‘linked’ for SDLT. HM Revenue and Customs (HMRC) may count people connected to a buyer or seller as being the same buyer or seller.

If 2 or more transactions are treated as linked then the buyer pays any SDLT due on the total value of all linked transactions. This may mean that they pay a higher rate of SDLT than if the transactions are counted individually.

Zizou

You can put one under your name and other under your partner or next of kin

Annie35

too much like hard work, now all you have to really do is value the house at 249999 & have the contents valued at 249999 & bobs your uncle! :T:T

Herbalus

While you're at it, why don't you agree with the seller that you'll pay £10 for the house, and oh look that's £499,990 as a birthday present.

ReadingTim

Errr...less of a saving than you think because you're buying 2 properties rather than one, so liable for the additional 3% SDLT. Property number 2 costs £10k rather than £2.5k, saving you a grand total of £2.5k in total, not £10k. Even if it didn't fail for all of the other reasons everyone else has outlined.

Still, a cunning plan, worthy of Baldrick himself......

G_M

This is an excellent idea. Save SDLT.

As was your idea of getting Consent for Lodgers instead of Consent to Let from your lender - just need a letter or two delivered to the house.
https://forums.moneysavingexpert.com/discussion/comment/72918519#Comment_72918519

And your idea of selling a house via gumtree. Save estate agent fees.
https://forums.moneysavingexpert.com/discussion/comment/72918553#Comment_72918553


Keep them coming.....