Stamp duty threshold and money for repairs

Money_Saving_Matt_K

I am buying a house for £260k, which is the full asking price. After searches and surveys there are approximately £10k worth of repairs which need to be done including damp & timber, gas, electrics etc.

Vendor won't budge on the price, and due to local market forces I will still have to pay £260k, or the vendor will put the house back on market. Just want to know if there is any loophole so I can get below the 3% stamp duty threshold, as I'm a 1st time buyer and now I need to find the extra 10k for repairs.

Is there anyway I can reduce the price to £250k, and pay £10k in cash? Paying seperately for fixtures and fittings is not an option as they were already valued at £750.

Or would the inland revenue take account of the money i need to spend of repairs and offset this against the amount i have to pay tax on?

Many thanks in advance for any advice/opinions on this!

PasturesNew

Money_Saving_Matt_K wrote: »

Is there anyway I can reduce the price to £250k, and pay £10k in cash?

No

Money_Saving_Matt_K wrote: »

would the inland revenue take account of the money i need to spend of repairs and offset this against the amount i have to pay tax on?

ROFLMFAO ... no.

Sorry, but the only way is to get the seller to drop the price accordingly. This is something best dealt with before you get too far down the road with the purchase.

Shame he won't drop. I had a buyer for mine a bit higher than you're paying. Two buyers in fact. As a last resort, them trying to pull out, I'd have accepted it if either had pulled the rug and offered me £250k quite a bit down the sale. But I wanted the house sold, millstone round my neck, wanted to move away. Do you KNOW they would put it back on the market? I rejected a £250k offer from my buyer, they upped it, I accepted new price ... yet STILL I would have been prepared to drop down just to complete the sale and know I could get on with my plans.

Every seller is different.

MissMotivation

Money_Saving_Matt_K wrote: »

Is there anyway I can reduce the price to £250k, and pay £10k in cash? Paying seperately for fixtures and fittings is not an option as they were already valued at £750.

No.....this is called Tax Evasion and could result in prosecution!

zekepes

I think the short answer is no.

If you REALLY want this property then I guess you will have to swallow the extra £2800 in stamp duty (and of course the extra £10K!). I guess now is the time to really question if you do want this property or if you are prepared to risk losing it by calling the vendors bluff. There is a lot of uncertainly in the market suddenly as this could be your trump card....

Is the property worth this much to you - £260K + £7.8K (SD) + £10K (repairs) = £277K?

I understand a compromise that is often taken after a survey like this is to slit the costs - i.e. vendor reduce price by £5K - which I know doesn't take you below the stamp duty threshold but...it is still 5K.

I dunno! Your vendor has a lot of confidence, considering the current climate, not to drop at all....

GOOD LUCK!