Fixtures and Fittings & SDLT (Dec 2003)

[niza]

Sorry if I'm asking the same question again. I recently made an inquiry about what legally constitutes "fixtures and fittings". Mr Lord kindly replied and explained that even things like kitchen units can be included. With the new SDLT coming in to effect from Dec 1, can I still pay for F+F separately, thereby paying the 1% SDLT rather than 3%. If so what can be included in this list? Basically can all the items listed previously (kitchen units, central heating, flooring, taps etc) be payed for separately?

Niraj

[accountant@uktaxshop]

Niraj,

The short answer is yes, this used to be rather common back when average house prices where peeping over the £60,000 threshold for 1% tax.

The way to do is to to agree two prices, one for the property one for the F&F. In practice you do need to be careful you are not too aggressive in your valuations and can substantiate the computation if challenged, taking into account the condition of the items.

ie the full replacement cost would not be relvant to a 10 year old kitchen.

I trust this is of use to you.

Regards,

James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436

[niza]

Thankyou, that's useful. I have read that once a value for the property has been stated, the contract has to clearly stipulate that the price of the property excludes these particular F+F otherwise the IR will reject the list and I will be fined? Is this true? Do I need to tell my conveyancer about this specifically? Sorry to ask but my conveyancer has been singularly unhelpful.

Niraj

[accountant@uktaxshop]

Im surpised your conveyancer is unwilling to help - they are normally the people to ask as they do it every day.

From what I recall you should agree the split with the seller of the property, and this split should be explicitly stated on the sale documents.

To be honest I have never completed the paperwork myself, this has always been left to the lawyers.