I am not commenting on his firm but usually what happens is when the shit hits the fan the company folds / goes bankrupt and the directors are untraceable.
How to avoid paying stamp duty??
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I am not commenting on his firm but usually what happens is when the shit hits the fan the company folds / goes bankrupt and the directors are untraceable.
You say that you thought about using this scheme, but that there was something it you felt uneasy with, but you know of a client that used it. Then you say you haven't looked into any scheme. What are you talking about? Is there definitely only one scheme, and how can you feel uneasy about it if you haven't looked into it?
chimneys
Well-known member
- Jun 11, 2007
- 3,592
On a similar note (but with a very different attitude!) US, how are you getting on with that "get your mortgage/loan repayments written off" scheme you were trumpeting on here a short while back?
I don't disagree with your scepticism about companies running 'schemes'. If most of their work is on such a scheme, then they will clearly not be able to pay all of the saved stamp duty if a court decides it is owed by all clients, so yes, such a company would disappear and the clients would be left with the problem. But I wouldn't dismiss the idea of such a scheme without learning the facts.
I have had several firms contact me with regard to this. I gave the details to one client who did their mortgage through me but they got uneasy about all the stuff they were asked to do, and the upfront fees etc so decided not to go ahead. One other client did it themselves and I will check today how they got on as its been about 9 months now since completion. I just have a gut feeling and for that reason I'M OUT.
As it happens I did bring it to the attention of people. I however decided not to get involved and no one through NSC did anything with me on this. As business conditions have been off the wall bad for 4 years I have looked into every opportunity to make money from things outside the box and diversify and I think anyone else would do the same.
ILOVEBHA
Member
How can you be sure any company will still be here tomorrow all we can go on is our good name, years of trading and we have very happy clients.
I am sure there are bad operators around but as under 10% of our business is through using these schemes, why would even risk this if we were not confident in the products.
It is not all about commission as we can earn more money through doing more compliance work but it is about giving our clients every option available and then they can make an informed decision. Am i mistaken but is this not what you want from trusted tax advisers?
I am sure there are bad operators around but as under 10% of our business is through using these schemes, why would even risk this if we were not confident in the products.
It is not all about commission as we can earn more money through doing more compliance work but it is about giving our clients every option available and then they can make an informed decision. Am i mistaken but is this not what you want from trusted tax advisers?
ILOVEBHA
Member
We do not use a scheme that manipulates the price and there is no upfront fee to pay at all.
I think we are being associated with all the dodgy schemes people hear about in pubs, let me reiterate this scheme has a 100% money back guarantee and is backed by over 450 chartered accountants who have each performed their own due diligence on the product, The top two Tax QC`s in London and some exceptional scheme providers.
I am not taking any high moral ground. Today you have to look at every possible thing to make money. Its just something I have decided not to pursue. Good luck anyway. I am not questioning you or your companies integrity. If the client makes an informed decision with all the facts, thats their choice.
Uncle C
Well-known member
Given the sums involved, can I ask who is making this guarantee.
Are appropriate sums of money held in an independant account, is it insurance backed, are the FSA involved etc etc?
ILOVEBHA
Member
Yes it is insurance backed by one of the top insurers in the world who believe me have also done their due dilligence on the product.
Sir Nigel of Eagleshire
New member
Transfer the property into an offshore company name and sell the company shares rather than the property is the only legal way i know.
Bold Seagull
strong and stable with me, or...
Well, I've recently been chatting about a provider of these schemes (not for myself, purely by chance), and it seems that it is a legal 'avoidance'. The process works by you depositing your Stamp Duty (SDLT) fee with your solicitor as normal. You accept that this fee will be kept for a 9 months that the HMRC have to challenge an application not to pay SDLT. The challenge made by the legal persons on your behalf. As I understand it, this challenge is made up of say 4 or more reasons for not paying SDLT that exploit the complexities of the wording in the legislation. Once this application has been made, HMRC have 9 months to decide whether to challenge this application. Given these reasons are researched and proven to question the robustness of the legislation, invariably the HMRC don't or cannot make the challenge required.
The contract I was privvy to involved the customer agreeing to pay 50% fees (+VAT) of the SDLT that was due at the time of completing the 9 months time frame when no further challenge can be made by the HMRC. For example, an SDLT due of £10,000, you would walk away with approx. £4k if all was successful. If not, then your SDLT would be due as normal and paid from the money you originally deposited with your solicitor. So rather than SDLT costing you £10k, the process has cost you £6k. If unsuccessful it's cost you nothing and you pay your SDLT.
I'd certainly want to look into it a lot more myself if I decided to do it, but bare in mind the purchase of the Chelsea Barracks site, and Labour's own HQ both used the same scheme.
As far as I understand there is nothing illegal in this. You get an official acknowledgment from the HMRC that they have received the application not to pay SDLT, and the 9 month period to act is in the legislation.
If anyone was interested in hearing me more (as the above is about the extent of my knowledge), PM me as I'd rather not post details of the person I spoke with.
Until the mortgage valuer comes along . . .
Actually, it's up to the law.
And thus raise the amount of tax to be paid by other people, just because of your selfishness.
That attitude isn't as a result of education, but as a result of the mass media. Most teenagers are self-obsessed and materialistic as they go through that transitional stage towards adulthood, obessed by the fame and riches they would gain if they only appeared on X-Factor or Big Brother. The problem for society today, is that the teenage phase no longer ends at 19, but is clung to by much older people who refuse to grow up.
I would go back and have a chat with this provider again because it was not how Chelsea Barracks and the Labour Party HQ were sold at all.
And if you think that HMRC cannot come knocking on your door after 9 months you are being very very naive.
http://www.dailymail.co.uk/property/article-1295924/Buy-20m--pay-stamp-duty-How-Candy-brothers-advised-foreign-buyers-avoid-millions-tax-luxury-flats.html
http://www.independent.co.uk/news/uk/politics/labours-tax-dodge-on-sale-of-hq-saved-163210000-stamp-duty-427849.html
The more I read about these schemes I think they are scams set up to fleece the public. In the example above at 9 months you pay the provider 4k. A number of further months down the line HMRC rock up on your doorstep asking for their 10k and by this time the provider is long gone with yours and others money having fulfilled his (no doubt legally safe) obligation at 9 months.