odecar Posted July 2, 2007 Report Share Posted July 2, 2007 Currently buying a property for £151k in a stamp duty exempt area i.e. no duty up to £150k. Only realised after bid accepted as has assummed it was normal area. Lots of equity in deal so not stressed about that element of it. However couple buying property off are going into a lease property that they have loved for 20 years. I have offered to pay the bond and first months rent £1850 and they will reduce the sale price by £1850. Want to ensure I don't cross the line between avoidance and evasion. Thoughts or better ways to do it. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 2, 2007 Report Share Posted July 2, 2007 Buy the prop at 149,950 and purchase the contents for £1k what you are talking about is not related to the sale or at least make sure that it isn't as it could be catch you out ! If after consideration you revise your offer down to 149,950 and they accept then no problem. However, it is clear as mud what you are doing so tread carefully !! offer them the balance for contents and keep it simple Plym ????????? Simon Link to comment Share on other sites More sharing options...
Melboy Posted July 3, 2007 Report Share Posted July 3, 2007 General rule of thumb is that the IR will permit purchases up to 3k above the stamp duty threashold. Keep an itemised list of what your buying as a signed receipt from the Vendor... and it must be sensibly priced as well. ie Garden Shed £150,Carpets £300, Curtains £200 and so on. Mel. Link to comment Share on other sites More sharing options...
laverda Posted July 8, 2007 Report Share Posted July 8, 2007 bought a property recently 6 months ago and the stamp duty threshold was £125 000 you are saying it is £150,000 bit confused here are there diferent levels etc please clarify Link to comment Share on other sites More sharing options...
odecar Posted July 8, 2007 Author Report Share Posted July 8, 2007 http://www.hmrc.gov.uk/so/dar/dar-qualifying.htm Yes there are areas where the £125k limit is extended upwards to £150k. I would ensure that any house you buy doesn't fall into the exempt areas as some solicitors don't know this and you would be paying stamp duty when its not needed. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 8, 2007 Report Share Posted July 8, 2007 I would suggest that buying in exempt areas is probably a very good idea as long as rental demand is strong enough.. Why ? Because generally these are deprived ares which are up and comming ( or due to be !) also you save money on the deal by not having to pay this out Although odecar does make a very valid point re: solicitor and you should check out if prop qualifies personally Simon Link to comment Share on other sites More sharing options...
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