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Where Taxpayers and Advisers Meet

Stamp duty on a £263,000 house.

pjos11
Posts:2
Joined:Wed Aug 06, 2008 3:38 pm

Postby pjos11 » Fri Jun 09, 2006 10:43 am

I`m moving home to a house that is costing £263,000. I found out today that I have to pay £7800 tax!! Can I ask the seller to reduce the price to £250,000 and pay him £13,000 out of my savings to lower the rate of tax to £2500?

adelante
Posts:231
Joined:Wed Aug 06, 2008 3:32 pm

Postby adelante » Fri Jun 09, 2006 11:44 am

no because that would be fraud / tax evasion for which you can go to prison so very unlikely the seller will want to do it. What you can do is to agree a price for the items such as oven etc separate but it is unlikely to come to 13,000.

So basically you are stuck with it unless you can negotiaite a price reduction.

ckc70
Posts:1
Joined:Wed Aug 06, 2008 3:38 pm

Postby ckc70 » Fri Jun 09, 2006 2:56 pm

what would be a "reasonable" amount/price you can agree for fixtures and fittings which would be acceptable to the tax authorities? Also could the price for a car parking space associated with a flat be agreed separately?
Going by the example pjos11 above, could the cost of building be £249K, fixtures £5K and car parking space £9K so the buyer still qualify for 1% stamp duty?

pallet
Posts:49
Joined:Wed Aug 06, 2008 3:25 pm

Postby pallet » Sat Jun 10, 2006 12:27 am

A purchaser may have to abide by the sellers special conditions ie. pay all his expences, estate agent 1%may be 2%, solicitors £1000 moving cost ect. what is left could be for fixtures and fittings.A simple undertaking from your solicitor who will hold the 13,000, I think may satisfy all parties

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Postby King_Maker » Sun Jun 11, 2006 4:50 am

The short answer is No.

However, if the MV of the fixtures and fittings is significant, then these could be paid for separately.


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