How to avoid paying stamp duty??

[Dex10]

I met someone earlier who said that its possible to avoid paying stamp duty on any property in excess of £250k. This is apparently due to some 'loop hole' that I would have thought that the HMRC will investigate and close.

Does anyone on here have any experience of this and how it works?

 

[DarrenFreemansPerm]

I'm pretty sure you don't have to pay it on property under £250k, confusion maybe?

 

[Gazwag]

I'm pretty sure you don't have to pay it on property under £250k, confusion maybe?

Only if you are a first time buyer - 1% for £125k-£250k

Any loop holes are almost certainly "pub talk" ones - HMRC will look closely at any purchase close to the bands

 

[Westdene Seagull]

Purchase price/lease premium or transfer value
SDLT rate /SDLT rate for first-time buyers
Up to £125,000
Zero / Zero
Over £125,000 to £250,000
1% / Zero
Over £250,000 to £500,000
3% / 3%
Over £500,000 to £1 million
4% / 4%
Over £1 million
5% / 5%

 

[beorhthelm]

i think the idea is you can pay say 249k for the house and say 5k or 10k for the "fixtures and fittings" like sockets, lights, maybe inbuilt cupbords and stairs. they are quite tighter on what those fixtures and fittings can be valued at these days.

 

[pasty]

Avoiding Stamp Duty

 

[Colossal Squid]

It's called tax evasion

 

[HantsSeagull]

I met someone earlier who said that its possible to avoid paying stamp duty on any property in excess of £250k. This is apparently due to some 'loop hole' that I would have thought that the HMRC will investigate and close.

Does anyone on here have any experience of this and how it works?

There are a number of stamp duty avoidance schemes which are perfectly legal. Usually only worth doing if you are buying for over 500k or £1m - otherwise the costs are a bit prohibitive. Have to wait for nine months - after which the IR cant come after you. The IR are always looking for ways to close loopholes but as soon as they do, the lawyers have a new one to take off the shelf.

 

[Lewes Seagull]

It's called tax evasion

No, Tax avoidance!

 

[Bold Seagull]

It's called tax evasion

I had an accountant who once told me the difference between tax avoidance and tax evasion was the thickness of a cell wall.

 

[Uncle C]

I met someone earlier who said that its possible to avoid paying stamp duty on any property in excess of £250k. This is apparently due to some 'loop hole' that I would have thought that the HMRC will investigate and close.

Does anyone on here have any experience of this and how it works?

First you need to become an MP.

 

[beorhthelm]

It's called tax evasion

avoidance dear chap. its only evasion when its illegal. or someone else is doing it

 

[brunswick]

over the table say the house is worth X, but pay the seller Y under the table - so you both lie about the official value or the sell, and draw up a secret squirrel contract.......give the agent a little cut too.

 

[HantsSeagull]

over the table say the house is worth X, but pay the seller Y under the table - so you both lie about the official value or the sell, and draw up a secret squirrel contract.......give the agent a little cut too.

now that's evasion!

 

[Gazwag]

i think the idea is you can pay say 249k for the house and say 5k or 10k for the "fixtures and fittings" like sockets, lights, maybe inbuilt cupbords and stairs. they are quite tighter on what those fixtures and fittings can be valued at these days.

Which will almost certainly result in a HMRC enquiry

 

[brunswick]

now that's evasion!

no, it is not giving in to a bunch of thieves (tax collectors in this instance).

 

[ILOVEBHA]

We offer this as part of our accountancy service to clients and all have gone through nice and easy.
As said this is legal tax avoidance and so much so that the Labour party bought their London headquarters using a stamp duty tax mitigation scheme.

 

[Lush]

no, it is not giving in to a bunch of thieves (tax collectors in this instance).

Ah yes. The thieves that collect the taxes that pay for schools, hospitals etc.

 

[beorhthelm]

We offer this as part of our accountancy service to clients and all have gone through nice and easy.
As said this is legal tax avoidance and so much so that the Labour party bought their London headquarters using a stamp duty tax mitigation scheme.

Labour party avoiding tax? surely some mistake? next you've be telling us some members have second homes or use private education?

 

[keaton]

over the table say the house is worth X, but pay the seller Y under the table - so you both lie about the official value or the sell, and draw up a secret squirrel contract.......give the agent a little cut too.

Wouldn't the "contract" be entirely unenforceable though?