Buyer trying to avoid stamp duty !

Strapped

You could "get away with" accepting £250k + maybe £3k for F&F but the IR would take a long hard look at £10k F&F (almost certainly charge the stamp duty unless you could prove it with receipts for brand-new items).

Do NOT accept cash; this is illegal.

EA sounds potentially dodgy. I have worked as an EA and I would have felt obliged to tell you what the "buyer" had said (since he was now going back on his £260k offer) but would have told you that you shouldn't touch it with a bargepole since this was illegal and we could not facilitate such a transaction.

Biggie

thanks for the reply guys.....

To be honest the EA well at least the managing director hasn't actually been encouraging this. I had an offer before of the same nature and the MD said I would advise against it.

however one of the negociators first said it was a on paper £260 I refused as I wanted more, however he came back to me to tell me he's not budging and when I asked for exact details he said oh by the way it's £250k + £10k cash but I only just found out.

Anyway there's no way I would go down this route. If it's the last resort I may say £260 on paper take it or leave it.

Anyway a family just came round and they are offering a lot more but they've got something to sell and it's not even on the market yet

Could just accept this on the basis they leave a holding deposit of 2k and get a survey done.
What you reckon ?....

devils_advocate

If he's going to bung you £10k to evade stamp duty, think how much he's prepared to bung the estate agent to get you to accept an undervalue!

Generali

I'd tell him to beggar off myself.

And I'd leave it a year or 2 (just so the connection is even less likely to be made to you) and tell the taxman what this bloke's up to.

RabbitMad

Don't see what the problem is myself. You are not evading the tax.

I would accept, make sure i got the 10k in cash prior to exchange, and then tip off the tax man. My concience would be clear, I'd have got the price I wanted, the tax man will get his cut and the developer will get his comupence for trying to get out of paying the tax.

guppy

RabbitMad wrote: »

My concience would be clear, I'd have got the price I wanted, the tax man will get his cut and the developer will get his comupence for trying to get out of paying the tax.

And you'd get your comeupance for aiding the fraud!

Zammo

Personally I'd go for it. This sort of thing goes on all the time and there is zero chance of getting caught.

Generali

Zammo wrote: »

Personally I'd go for it.

Have you done this yourself (either side of the transaction)? I wouldn't.

Zammo wrote: »

This sort of thing goes on all the time and there is zero chance of getting caught.

2 points:

1. You have some evidence of this or does OP have to take your word for it?

2. Where's the upside for OP?

guppy

Zammo wrote: »

Personally I'd go for it. This sort of thing goes on all the time and there is zero chance of getting caught.

How does it go on? Are you suggesting loads of EAs, solicitors, mortgage surveyors are all turning a blind eye or are participating?

seven-day-weekend

It goes on in Spain all the time and for much larger amounts than £10k. It's illegal but widespread. Sometimes people underdeclare by as much as 30% and the 'black'money is then paid in cash.

Lawyers, Estate Agents and Bank Managers take part in the Black transaction.

But that's Spain. Don't dream of doing it in the UK!