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How to avoid paying stamp duty??



Dex10

New member
Sep 8, 2010
54
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?
 






Westdene Seagull

aka Cap'n Carl Firecrotch
NSC Patreon
Oct 27, 2003
20,938
The arse end of Hangleton
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

A. Virgo, Football Genius
Jul 21, 2003
35,265
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.
 








HantsSeagull

Well-known member
Aug 17, 2011
4,016
Caught in a Riptide
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.
 








Uncle C

Well-known member
Jul 6, 2004
11,678
Bishops Stortford
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

A. Virgo, Football Genius
Jul 21, 2003
35,265


brunswick

New member
Aug 13, 2004
2,920
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.
 






Gazwag

5 millionth post poster
Mar 4, 2004
30,093
Bexhill-on-Sea
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
 




ILOVEBHA

Member
Jul 27, 2004
830
Shoreham By Sea
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.
 






beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,265
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

Big heart, hot blood and balls. Big balls
Nov 18, 2004
9,630
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?
 



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