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Where Taxpayers and Advisers Meet

Arms length transaction

Bill31
Posts:50
Joined:Sun Jan 19, 2020 12:32 am
Arms length transaction

Postby Bill31 » Thu Feb 04, 2021 9:23 am

I'm thinking of selling house to neighbour who is interested and keeps asking me.
How do I make the transaction at arms length to satisfy hmrc? Do I still need to use a estate agent and pay fees?
Also to add its my PRR.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Arms length transaction

Postby pawncob » Thu Feb 04, 2021 11:47 am

If you're not related then it is already an arms length transaction.
You don't need to use an estate agent (or even a solicitor).
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Arms length transaction

Postby AGoodman » Thu Feb 04, 2021 12:48 pm

...but a solicitor would be a good idea.

An estate agent's main job is to find a buyer. You already have one.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Arms length transaction

Postby bd6759 » Thu Feb 04, 2021 1:17 pm

If you're not related then it is already an arms length transaction.
You don't need to use an estate agent (or even a solicitor).
The requirement isn’t simply “arms length” but “bargain at arms length”. This applies to every transaction. Relationships don’t come into it except that such transactions are always treated as not being bargains at arms length.

In this case HMRC won’t be interested because CGT doesn’t apply. He can sell it for whatever he wants.


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